LOI (Letter of Intent)

Definition

A non-binding promise to maybe do a deal, signed before anyone's actually serious about it. It's what lawyers write when they want to charge more.

Example Usage

We signed an LOI to acquire Company X, but we're probably not going to follow through.

Origin

Business and legal terminology

Fun Fact

LOIs are technically non-binding, but breaking one can damage reputation and sometimes trigger litigation

Source: Mergers & acquisitions and business development terminology

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