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Example Of Letter Intent

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The Letter of Intent is not binding, and rather silly at the worst of times. An LOI by definition only registers intent to purchase, and it specifies this intent weakly, and due to its ambiguity should be avoided.

Few traders and brokers realize that the Letter of Intent is not a standard document in International Trade. When "LOI" is used, it actually refers to the Letter of Indemnity. This is standard usage of the term and has been for decades. The Letter of Intent (hereafter referred to as LOI) is often used in specific domestic trades, such as in real estate or corporate mergers, but it has no standard usage in International Trade itself.

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