what is letter of intent in a business term?

Answer 1

usually, it's a non binding letter outlining the basic economic terms of an agreement to be formalized in a legal document to follow. sometimes, when signed by both parties, a LOI has a clause that gives a timeframe for such a contract to be concluded with some kind of penalty on 1 or both parties for not working toward the finalization of a deal, sometimes not. there are times when it can be detrimental to sign a LOI without review by an attorney, because i've seen cases where there is litigation over a sloppy letter that does not address key business and legal issues. depending on how it's prepared and what it says, it could be binding, so watch out.

Answer 2

A LETTER OF INTENT is a business document stating a proposition outlining the terms of a contract, or "deal". It suggests what each party would DO or NOT DO if the proposal became an actual contract.

Answer 3

I believe it is a formal declaration of ones genuine intention to do something, i.e. "letter of intent to: (a) purchase ... at a stated price (b) sell ... at a stated price (c) to merge with .... on said terms (d) marry a certian individual (e) (or any other statement just short of a guarentee or promise. Although it might not stand alone, it could surely be used in a civil case should the intent be breeched.

Answer 4

A letter of intent is simple a declaration of what you intend to do. In business, it usually means a promise to fulfill some action or pay a sum of money.

Answer 5

its kinda like a pre contract.

you write out a letter of intent, basically what you intend the contract to hold, and thats used as a basis for writing up the real contract...

i think

Answer 6

Going to do Business ,Used as an outline .

Answer 7

At my job, its basically a 'promise from our customer' that we will be awarded their business, and they will follow-up with more formal paperwork later.

Answer 8

gooogle it