A letter of intent is a foundational business document that parties often enter into at the outset of a business transaction or deal, such as the purchase and sale of a business, a real estate sale and purchase, or some other commercial transaction or deal between two businesses.
Other names for a letter of intent are a memorandum of understanding or simply a term sheet.
Although not technically necessary, entering into a letter of intent is usually good practice in the business world.
But what is a letter of intent? And is it a binding agreement?
On today’s podcast episode of Business is More Exciting Than Any Game, I discuss letters of intent, what goes into a good LOI, provisions that the parties may want to make binding even if the overall letter of intent is not binding, and other things.
Here’s a link to that podcast episode: Click here.