What is a Letter of Intent (LOI)?

A Letter of Intent (LOI) is a document that outlines the intentions of two or more parties to enter into a formal agreement in the future.

It expresses interest and commitment towards a project, business deal, or partnership. Although it lays out key terms and objectives, an LOI is generally **not legally binding** and does not serve as a formal contract.

The purpose of an LOI is to establish the framework and understanding between parties, leaving room for more detailed negotiations later.

Signing an LOI can help clarify each party's goals, provide a timeline for negotiations, and set clear expectations before moving forward with more formal agreements.

This process is particularly helpful in business deals, partnerships, acquisitions, or project collaborations.