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Letter Of Intent Example Investment

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On Offer acceptance there is either a contract generated or a pro forma invoice generated. Since the offer is binding once accepted, the offer if well enough detailed and advised can and often does take the place of the contract. Customarily in Real Estate transactions the purchase offer itself is generally also the contract for purchase as well. The offer becomes a binding contract once accepted.

Buyer accepts offer and signs it, where offer acceptance is binding depends of the legal jurisdiction. For example English and common law differs slightly from American uniform commercial law on matters of offer acceptance and when performance becomes binding on an offer. The seller can also reply with a pro forma invoice. In fact a pro forma invoice can serve as quote and offer, becoming a more or less binding purchase order upon buyer acceptance and signing. Pro formas are used more in smaller FCL trades, and not in larger bulk trades.

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