A Letter of Intent (LOI) is an agreement document that outlines the general plans, deals, or confirms between two or more parties before a legal agreement is finalised. A LOI is not a contract and cannot be legally enforced but signifies a genuine interest in reaching the final agreement subject to due diligence, additional information, or fulfilment of certain conditions.
Reference Definition by Businessdictionary.com: Letter of Intent (LOI) is an interim agreement that summarizes the main points of a proposed deal, or confirms that a certain course of action is going to be taken. Normally, it does not constitute a definitive contract but signifies a genuine interest in reaching the final agreement subject to due diligence, additional information, or fulfilment of certain conditions. The language used in writing a letter of intent is of vital importance, and determines whether it is only an expression of intent or an enforceable undertaking. Also called ‘memorandum of understanding’ or ‘precontract’.
Related Definitions in the Project: The Project Management; Project Contract
