LOI - Letter of Intent
this is a document outlining the discussion items between the dealing parties.
LOI normally is not a binding legal contract, it serves as a memorandum
It means keep reading, and reading...and get a better understanding of this business, or it means you are two years away from closing a transaction.
Quoting from [urea46]:
need to know what Loi means
It stands for Letter of Intent ... showing one's intention to participate in a business deal
Quoting from [urea46]:Urea,
need to know what Loi means
LOI = Letter of Intend is in business correspondence terms or letter category
after some asking and queries, if the discussion are going to the more serious
stage, such as asking a full details product catalog, a sample, Schedule, certificate,
Laboratory analyze test , etc that are so internal/confidential. For this matter to avoid
mis use and malicious matter, the seller ask your serious statement by a letter, so
call Letter of Intend, contents of who you are (company profile if necessary),
How many qty (amount) that you may need to buy, in what level/scale that you need
the products etc ... ..for give them a reason to keep going with you.....
some big company/corporation will ask such this official letter before they will give
their time to response to your Inquiry... for not loosing their time.
But fhis is frequently use in big projects, Financing project, Big Loans, Realty etc
you will find more e.g.: LOI, MOU, SC, PO . etc
See more in Business correspondence letter..!!
Quoting from [urea46]:
A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized
means agreeing on some thing and ginving it in letter
Quoting from [urea46]:
need to know what Loi means
"Letter of Intent "is issued by the buyers bank. It is send by swift message to the sellers bank.
Usually big sellers demand it from the potential buyers do avoid losing time . It shows that the buyer has a credibility at the bank and also he/she has an account big enough to make deals.
Once I wanted a LOI to check if the customer was real.
Quoting from [urea46]:
need to know what Loi means
Quoting from [urea46]:
need to know what Loi means
A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized. The concept is similar to the so-called heads of agreement. Such agreements may be Asset Purchase Agreements, Share Purchase Agreements, Joint-Venture Agreements and overall all Agreements which aim at closing a financially large deal.
LOIs resemble written contracts, but are usually not binding on the parties in their entirety. Many LOIs, however, contain provisions that are binding, such as non-disclosure agreements, a covenant to negotiate in good faith, or a "stand-still" or "no-shop" provision promising exclusive rights to negotiate. A LOI may also be interpreted as binding the parties if it too closely resembles a formal contract.
The purposes of an LOI may be:
- to clarify the key points of a complex transaction for the convenience of the parties
- to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal
- to provide safeguards in case a deal collapses during negotiation
A LOI may also be referred to as a memorandum of understanding (MOU), term sheet or discussion sheet. Although the terms refer to different documents, the differences are often formal in nature, reflecting different drafting styles or business customs, not a substantive difference in what these various documents accomplish.
Miss JR
