10 February 2016
Letters of intent (L O I) are short written documents broadly outlining the terms of the understanding between two or more parties (viz. Lenders & Borrowers, Parties to a merger proposal etc.) in brief details of which are to be worked out in due course leading to binding contract / agreement among parties. LOIs' are not legally binding binding on the involved parties unless specifically provided for. As the name itself suggests, it is only an intention rather than a confirmed and binding right / duty / obligation.
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