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What does LOI mean in documents?

LOI full form is Letter of Intent, Letter of Intent is a document declaring the preliminary commitment of one party to do business with another party. It outlines the chief terms of a prospective deal between the parties.

Who provides a letter of intent?

Buyers send sellers an LOI as a way to express interest in purchasing the business but also to protect themselves by locking the seller into negotiations with the prospective buyer.

What is the main purpose of the letter of intent?

A letter of intent (also known as an LOI) is often written to initiate a business transaction and help define expectations with customers, partners, and vendors before creating a binding agreement.

What are documents of intent?

A letter of intent (LOI or LoI, or Letter of Intent) is a document outlining the understanding between two or more parties which they intend to formalize in a legally binding agreement. The concept is similar to a heads of agreement, term sheet or memorandum of understanding.

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