Letter of Intent
/ˈlɛtər əv ɪnˈtɛnt/
Definitions
- (n.) A preliminary document expressing the intentions of parties before a formal contract is finalized.
The parties signed a letter of intent to outline the main terms before drafting the final agreement.
- (n.) In mergers and acquisitions, a letter outlining key terms and conditions under which a transaction will proceed.
The buyer and seller exchanged a letter of intent to indicate agreement on major deal points.
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Commentary
Letters of intent are often non-binding and serve to clarify preliminary understandings; precise language is important to distinguish binding provisions from intentions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.