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Simple English definitions for legal terms
LOI
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A quick definition of LOI:
LOI: An abbreviation for "Letter of Intent." This is a document that shows someone's intention to do something, like buy a house or start a business. It's like a promise to take a certain action in the future.
A more thorough explanation:
Definition: LOI stands for Letter of Intent.
A Letter of Intent (LOI) is a document that outlines the preliminary agreement between two parties before the final agreement is reached. It is a non-binding document that sets out the key terms and conditions of the proposed agreement.
For example, a company may send an LOI to another company expressing their interest in a potential business partnership. The LOI would outline the basic terms of the partnership, such as the scope of the partnership, the responsibilities of each party, and the timeline for the partnership.
Another example is when a student sends an LOI to a university expressing their interest in attending the university. The LOI would outline the student's academic achievements, extracurricular activities, and reasons for wanting to attend the university.
These examples illustrate how an LOI is used to establish the preliminary agreement between two parties before the final agreement is reached.