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What is a Letter of Intent (LOI)?
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What is a Letter of Intent (LOI)?

Published on 18/08/2022
Contributor(s): Jean-Louis Dubrule

A letter of intent (LOI), is a document stating the preliminary commitment of one party to do business with another. The letter describes the main terms of a possible agreement. LOIs are commonly used in large business transactions such as mergers and acquisitions or major capital increases.

Most LOIs include non-disclosure agreements (NDAs), which contractually stipulate the elements of an agreement that both parties agree to keep confidential, the details of which may be disclosed to the public. Many LOIs also include non-solicitation provisions.

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