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A letter of intent (LOI) is a document indicating that parties may agree to something in the future, often considered an informal precursor to a contract. Many clients seeking LOIs either lack understanding of their purpose or are unsure of what they entail. Tom Riley explains that an LOI is not a formal contract but rather a way for parties to express their intentions without binding commitments, akin to a substitute teacher discussing future plans without guaranteeing them. Essentially, an LOI outlines the intent to negotiate or finalize an agreement later.
