Loi (Letter of Intent)

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 whitethorn be Asset Purchase Agreements, Share Purchase Agreements, Joint-Venture Agreements and overall all Agreements which aim at last a financially large deal.LOIs resemble written contracts, but are usually not rear on the parties in their entirety. M either LOIs, however, contain provisions that are binding, such as non-disclosure agreements, a promise to negotiate in good faith, or a stand-still or no-shop provision promising exclusive rights to negotiate. An LOI whitethorn also be interpreted as binding the parties if it too closely resembles a formal contract. The purposes of an LOI whitethorn be treated as to clarify the key points of a complex transaction for the convenience of the parties * to foretell officially that the parties are currently negotiating, as in a merg er or joint speculation proposal * to provide safeguards in case a deal collapses during negotiation An LOI may also be referred to as a memorandum of understanding (MOU), term sheet or discussion sheet. The different damage reflect different styles, but do not indicate any difference under law. A contract, in contrast, is a legal document governed by contract law.There is however a particular difference between an LOI and MOU, whereby an LOI is the intent from one party to another and does not in this case take aim to be signed by both parties, whereas an MOU is an agreement between two or more parties, which should be signed by all parties to be valid. edit Specific examples See also National Letter of cloaked * Education. In the United States, Letters of Intent are frequently reached between high school of age(p) athletes and colleges and universities, which then reserve athletic scholarships for the athletes upon graduation. Academia. In academic settings Letters of Intent a re part of the application program process. There they are also known as Statement of purpose or Application Essay. * Solicitation. A letter of intent (LOI) is highly encouraged but it is not assumed or binding, and does not encipher into the review of a subsequent application. The information that it contains allows government staff to estimate the potential workload and programme the review. LOI, letter of intent, Grant Solicitation, retrieved 2008-05-21 * Disability.The LOI for a child is a document written by the parents or guardians that describes the childs or adult childs history, current status, and location of all other documents. In the event of the death of the disabled childs parents or guardians, courts rely upon the familys LOI for guidance in understanding the familys wishes. * Schools. School Administrators, particularly at high schools, need a Letter of Intent to approve the formation of a club. * Real Estate.In cases where the real property in question is not l isted on the MLS or listed with a Realtor, there may not be an low-cal way to notify the owner of the property and other interested parties of intent to purchase. Often it is necessary to officially begin the process of a purchase and allow all peripheral interested parties to begin any other processes (such as a multi-million dollar loan for a commercial property may require a letter of intent before a financial institution will allow staff office to spend time working on said loan) necessary for the completion of the sale.