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A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal.
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.
The language of an LOI should be significantly different and distinguishable from that of an offer letter. The LOI may have certain basic details of the intended job role and the approximate cost to company (CTC) that the candidate could expect if he/she were offered employment within the specified time frame.
A letter of intent is a written agreement issued by an authority (in this case Slum Rehabilitation Authority) to a implementing agency (in this case the developer or CHS) giving a green light to begin the preliminary work as stated, before the formal contract (in this case IOD/ IOA) is issued.
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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A letter of intent is generally used for 3 reasons: To ensure both parties are protected in the deal they have entered. To ensure the points that need to be negotiated are clear. To use as a platform to indicate that both parties are in the process of entering into an agreement.
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. They also help with negotiating terms.

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