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A letter of intent (LOI) is a document indicating that parties agree they might reach an agreement in the future. Often misunderstood, many business clients inquire about LOIs without fully grasping their purpose. Tom Riley explains that an LOI is "almost but not quite" a contract and is not always necessary, yet it remains a common source of confusion. Essentially, it outlines the intentions of the parties involved without binding them to a specific contract at that moment. The comparison to a substitute teacher highlights its provisional nature—indicating a future discussion rather than a definitive contract.
