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 ?
The Letters of Intent and subsequent agreements are subject to regulatory approval and to approval by the Board of Directors of each company.
The rollout of the system has commenced on Central Trains and will be expanded in 2004 to cover other train operators who have signed letters of intent which the company expects to convert to contracts this year.
Among the important factors that could cause the Company's actual circumstances, or results, to differ materially from those implied by such forward-looking statements include market conditions, developments in the Company's business and industry, inability to gain customer acceptance of its new products, cancellation of booked orders at any time, failure to receive any additional orders within the markets listed, failure to complete negotiations on awards and turn them into bookings, and failure to complete letters of intent and turn them into bookings.
E-Sync has terminated the previously-announced letters of intent for potential transactions with SpaceLogix, Inc and Howard Systems International.
American International Petroleum Corporation (NASDAQ: AIPN) today announced that it has signed two letters of intent with Sargeant Bulktainers ("SB"), a unit of The Sargeant Group of Companies.
DualStar's ability to satisfy the various conditions contained in the above-referenced letters of intent with Exelon Capital Partners, Inc.