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the first document issued by a buyer to the seller before the finalization of the order is letter of intent called loi it is a very important document and it serves a lot of purpose so in todays video lets understand what is letter of intent what purpose it serves and are there any frauds in it if yes how to safeguard yourself from such frauds [Music] for latest updates subscribe to our channel and press the bell icon [Music] well if we take the formal definition of letter of intent then it is a document declaring the preliminary commitment of one party to do business with another party with say terms and conditions before we take into that what has been written into the letter of intent lets understand who is the issuer and who is the receiver of the letter of intent letter of indent is always he should buy the buyer to the seller so basically if you are an exporter you will receive the loi and if you are importer you will issue an loi well in the case of loi there is no formal fo