letter of intent

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Letter of intent

An assurance by a mutual fund shareholder that a certain amount of money will be invested monthly, in exchange for lower sales charges. In mergers, a preliminary merger agreement between companies after significant negotiations.

Letter of Intent

1. A document detailing a parent's wishes with regard to his/her minor children in the event of his/her death. For example, a letter of intent may state with whom the parent wants the children to live. While it is not a legal document, judges often use letters of intent along with other documents when determining the best interests of the children with regard to their future.

2. A document indicating a corporation's intent to undertake a merger or acquisition. A letter of intent outlines the details of the merger or acquisition, including the purchase price and whether it will be paid in cash, stock, and/or debt. It is important to note that a letter of intent it not legally binding and may not be enforced. However, an LOI shows that the company is serious in its intention and there may be reputational risk in not following it.

letter of intent

An agreement by a mutual fund shareholder to invest a specific sum over a defined period in order to qualify for reduced sales fees. The reduced fee may apply to an individual fund or to all the funds operated by an investment management group. Compare breakpoint. See also right of accumulation.

letter of intent (LOI)

A signed document between parties setting out the deal points on which they agree and leaving for later negotiation the minutia over which the lawyers will argue. In the absence of any limiting language in the LOI,it can be construed as a binding contract between the parties.Usually,however,the LOI will recite that it is only an expression of interest regarding the parties' mutual intent, that the parties have not reached an agreement regarding any terms or provisions of a contract,and the LOI is neither a contract,nor an offer capable of acceptance,nor evidence of a contract,but merely the current status of negotiations that might possibly lead to a contract.

References in periodicals archive ?
To address the concern that the letter of intent not be construed as binding, the parties generally include a simple disclaimer stating that the parties do not intend the letter to be binding.
The general principle is that the expectations or intent of the parties determines whether a letter of intent constitutes a binding contract.
There can be no assurance that the conditions to the transactions contemplated by the letter of intent will be satisfied or that those transactions will be completed or, if completed, that The Mills will recover its invested capital.
Although The Mills believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, The Mills can give no assurance that its expectations will be attained and it is possible that our actual circumstances and results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties, including The Mills' ability to obtain the necessary consents from The Mills' lenders and The Mills' and the other parties' ability to satisfy the other conditions to closing the transaction subject to the letter of intent.
Among other conditions to closing or simultaneous with or subsequent to closing of the Reorganization Transaction, as provided in the Letter of Intent, the following conditions will apply:
The Letter of Intent provides that, at the time of closing of the Reorganization Transaction, G/O and SH Celera shall enter into a Facilities Administration and Operating Services Agreement (the "FA&OS Agreement"), in form and substance mutually agreed upon by them, pursuant to which SH Celera will provide all facilities, administration and operating services necessary for G/O to conduct a fee based business consulting practice under the trade name of "G/O Business Solutions, Inc.
The Letter of Intent holds no binding obligations to either party unless or until the parties reach a final agreement on all terms and conditions and execute a formal written contract.
The letter of intent contemplates that (i) FLJ will create a newly formed entity ("Newco"), which will enter into a merger agreement with the Company and a stock purchase agreement with National Patent, (ii) Newco will commence a tender offer for all of the Company's outstanding shares, at the same $.
There can be no assurances that the proposed transactions will be consummated, either on the terms set forth in the letter of intent or at all.
Over the term of the Letter of Intent Sona loaned Idea One a total of $550,000 through a series of convertible promissory notes.
Cammarano continued, "In addition to the MFC Development stock, which we intend to distribute to our stockholders, the letter of intent contemplates that we will receive $4.
Since mid 2004, it expanded its activities to obtaining rights to products that it markets and sells to retail outlets, and, in April 2006, it entered into a letter of intent to sell this division.