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The document is a Letter of Intent for Skills Development Providers (SDPs) intending to apply for accreditation for historically registered full qualifications at the QCTO through a Quality Assurance Partner (QAP). It outlines the necessary information required from the SDP, including contact details, qualification specifics, current accreditation status, and the type of accreditation being sought. The letter serves as a preliminary step before submitting a formal application and must be emailed to the QCTO for acknowledgment.

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What is the purpose of a letter of intent?

The Quality Council for Trades and Occupations (QCTO) is a Quality Council established in 2010 in terms of the Skills Development Act Nr. 97 of 1998.

How strong is a letter of intent?

While some provisions of a letter of intent may be binding, parties normally do not intend the overall document to be legally binding. Typically, LOIs contain some terms that are legally enforceable and others that are not.

Is a letter of intent worth anything?

While a letter of intent is not a legally binding document, it does however serve as motivation for both the buyer and seller in a deal to keep putting effort into the negotiations process.

How important is a letter of intent?

In most cases, buyers will not engage in negotiations to purchase a business without first executing an LOI. 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 does QCTO stand for?

When two parties get involved in a legally binding agreement, a letter of intent is usually required before finalizing the contract. Even though a letter of intent is not binding, it indicates a serious commitment that requires fulfillment.

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What happens after getting the letter of intent?

What happens after the letter of intent is signed? The signing of an LOI typically triggers the due-diligence period, during which negotiations occur, the purchase agreement is drafted, and the buyers requests for company information are satisfied (see our article, Preparing for Due Diligence in a Business Sale.

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