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A letter of intent (LOI) is a document that outlines the terms of a future agreement, created before the parties enter a formal contract. It often specifies a deadline for executing the contract. LOIs can be legally binding or non-binding; the former is enforceable, while the latter signifies a good faith commitment without legal obligations. These documents can be useful in various contexts, including real estate, business transactions, lawsuits, and immigration proceedings. The video provides examples and encourages viewers to explore links for further information on creating their own LOI.