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[Music] now were going to talk about frequently used provisions in a LOI and well start with some frequently used non-binding provisions first up is purchase price oh well the purchase price in an LOI is generally not a non-binding term it might be and it might change a little bit during due diligence its probably one of the most important terms of your LOI it can be fixed it could be based on a formula it is usually the parties put forth how theyre going to pay the purchase price in the LOI you know is it going to be all cash up front and there going to be a down payment with a promissory note for later is it going to be per cash part stock another another tool is you know that people should consider as a promissory note or it could you know hold pull back which well talk about later but portion could be paid through a promissory note which can help bridge a gap between you know discrepancy you know debate about purchase price between the two parties or it could help the parties
