Letter of intent – n : legal term; often referred to by its acronym, LOI; a brief, temporary, pre-contract document between two or more entities that outlines the parties’ intention regarding a future contractual or business arrangement. The purpose of a letter of intent is for the parties to establish and document a common understanding of the form in which they see their legal or business relationship evolving; LOIs tend to have a temporary, limited term and serve the purpose of a “place-holder” while the parties continue detailed due diligence and/or negotiation. (see also: memorandum of understanding or MOU)

------------------------------------------------------------
Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
Copyright © 2004-2006 CompanyCrafters LLC