Letter of intent
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[edit] Law and Business
A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized.
LOIs resemble written contracts, but are usually not binding upon the parties in their entirety. Many LOIs, however, contain provisions that are binding, such as non-disclosure agreements or covenants to negotiate in good faith. An 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
An LOI may also be referred to as a memorandum of understanding (MOU), term sheet or discussion sheet.
[edit] Education
In the United States, letters of intent are frequently reached between high school senior athletes and major colleges and universities, which then reserve athletic scholarships for the athletes upon graduation.
In academic settings Letters of Intent are part of the application process. There they are also known as Statement of purpose or Application essay.
[edit] Disabilities
The LOI for a disabled child is a document written by the parents or guardians that describes the child or adult child's history, current status, and location of all other documents.
In the event of the death of the disabled child's parents or guardians, courts rely upon the family's LOI for guidance in understanding the family's wishes.
