Letter of Intent
A letter of intent sets out the principal terms of a proposed transaction, such as valuation, structure, and timing. Whether a provision is binding depends on its wording.
A letter of intent (LOI) records the status of discussions about a potential transaction. It may outline an initial valuation, the proposed structure, key assumptions, timing, and the scope of further review.
Each provision must be assessed separately to determine whether it is binding. Confidentiality or exclusivity commitments may be enforceable even if the acquisition itself remains subject to further agreement. An LOI therefore requires careful review before signing.
A letter of intent sets out the principal terms of a proposed transaction, such as valuation, structure, and timing. Whether a provision is binding depends on its wording.