letter of intent(redirected from letters of intent)
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Letter of intent
Letter of Intent
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
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.