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A letter of intent (LOI) is a document where parties express their intention to agree on something in the future, often considered an informal precursor to a contract. Many clients inquire about LOIs, showing a general lack of understanding regarding their purpose. Tom Riley explains that LOIs are "almost but not quite a contract," and describes them as akin to substitute teachers who outline future plans without immediate commitments. Ultimately, an LOI sets the foundation for potential agreements but does not bind parties to a contract.
