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 ?
on possible expansion of investments through the opening of additional convenience stores - Letter of intent by Japan Marine United Corporation and Marubeni Corporation on the development of the country's maritime safety capability by providing maritime expertise, including but not limited to the service of design and construction of ships - Letter of intent by Canon Inc.
21) Letter of Intent: Lawson, Inc.(Expand investments through the opening of additional convenience stores)
When all is investigated and determined, a letter of intent can be signed and used as a basis for the lease documents.
Mowlem Plc discovered the pitfalls of using a letter of intent when they accepted a letter issued by their employer, Stena Line Ports Ltd.
The letter of intent with Green Dolphin Marketing, LLC, a Nevis company, which outlines the Asia Marketing Agreement, was signed by Yastand Hong Kong International Group Company, Ltd.
* Dragon has signed a letter of intent to acquire Xianyang Naite Research & Development Center, Ningbo, China, which was created to improve production efficiencies in the specialty packaging industry.
(If not for the National Letter of Intent program, a student could find his or her scholarship taken by a more highly recruited student only weeks or days before classes begin.)
SPD said the letter of intent calls for Wolverine to enter into a definitive sale agreement on or before June 1.
The letter of intent, signed in May, covers the purchase of ten narrow-body Airbus A321 aircraft between 2006 and 2010.
We have just announced entering into a letter of intent to merge with Oriental Wave Holding Ltd., on March 24, 2004, which would create a company that offers biotech generic drugs, chemical generic drugs and chemical intermediate produced in China competitively and marketed in China and international markets." said Dr.
However, despite the disarmingly simple name, the letter of intent frequently accomplishes far more in practical effect and prudent parties will guard against being misled by this seemingly informal terminology.
Arrington, who said Thursday he signed a letter of intent to play at Oregon the day before, seems to be in question for at least the next few days.