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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The parties to a construction project may find themselves in a similar situation, where the project might be completed without any issues based on the LOI alone.
How can the LOI protect potential buyers and sellers if a breach of one of the binding provisions occurs?
* le projet de loi 1, Loi sur les droits de la personne;
Reweigh crucibles and calculate percent weight loss as LOI.
Voici les projets de loi adoptes jusqu'a maintenant en 2002 :
Le projet de loi en question a ete adopte au niveau de la premiere chambre et attend toujours son approbation par la chambre des Conseillers.
Au cours de la seance de discussions, le representant du ministere de la Justice, le conseiller Omar Al Cherif, a indique que c'etait le proces de financement etranger qui a pousse le Gouvernement a amender la loi sur les ONG.
Le groupe de reflexion juridique local, Veritas, declare que le projet de loi sur le mariage recemment promulgue est trop complexe car il balaye soit des problemes critiques sous le tapis, soit les ignore completement.