What is a Letter of Intent?

Definition of: Letter of Intent (LOI)

Letter of Intent (LOI) An agreement between a buyer and a seller. The letter of intent describes the basic terms and conditions of the transaction between the buyer and the seller, including price, payment terms, due diligence periods, exclusivity and any other basic conditions to closing the deal. The letter of intent is signed before a purchase agreement is entered into. In most cases a deposit is given along with the Letter of Intent.

About the Author
BusinessMart.com has become the fastest growing business for sale search engine, helping buyers and sellers of small businesses and franchises. BusinessMart.com has many resources to help you on your journey to start your own business, sell your existing business or open a franchise. BusinessMart.com has thousands of businesses for sale in the US and Canada.

*** You may use this article on your website as long as the "About The Author" box is in place with all links exactly as above and the article or any links in the article are not altered. ***