Skip to main content

LETTER OF INTENT

A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized. The concept is similar to the so-called heads of agreement. Such agreements may be Asset Purchase Agreements, Share Purchase Agreements, Joint-Venture Agreements and overall all Agreements which aim at closing a financially large deal.

LOIs resemble written contracts, but are usually not binding on the parties in their entirety. Many LOIs, however, contain provisions that are binding, such as non-disclosure agreements, a covenant to negotiate in good faith, or a "stand-still" or "no-shop" provision promising exclusive rights to negotiate. A LOI may also be interpreted as binding the parties if it too closely resembles a formal contract.

The purposes of an LOI may be:

  1. To clarify the key points of a complex transaction for the convenience of the parties
  2. To declare officially that the parties are currently negotiating, as in a merger or joint venture proposal
  3. To provide safeguards in case a deal collapses during negotiation

A LOI may also be referred to as a memorandum of understanding (MOU), term sheet or discussion sheet. The different terms reflect different styles, but do not indicate any difference under law. A contract, in contrast, is a legal document governed by contract law.

There is however a specific difference between an LOI and MOU, whereby an LOI is the intent from one party to another and does not in this case have to be signed by both parties, whereas an MOU is an agreement between two or more parties, which should be signed by all parties to be valid.

Souces:http://en.wikipedia.org
Labels:

Comments

Post a Comment

Popular posts from this blog

KLASIFIKASI KAPAL

Klasifikasi kapal merupakan kewajiban para pemilik kapal berbendera Indonesia sesuai dengan Keputusan Menteri Perhubungan yang menyatakan bahwa kapal - kapal yang wajib klas adalah kapal - kapal dengan ketentuan : Panjang > 20 m dan atau Tonase > 100 m3 dan atau Mesin Penggerak > 100 PK dan atau Yang melakukan pelayaran Internasional meskipun telah memiliki Sertifikat dari Biro Klasifikasi Asing. Lingkup klasifikasi kapal meliputi : Lambung kapal, instalasi mesin, instalasi listrik, perlengkapan jangkar. Instalasi pendingin yang terpasang permanen dan merupakan bagian dari kapal. Semua perlengkapan dan permesinan yang di pakai dalam operasi kapal. Sistem konstruksi dan perlengkapan yang menentukan tipe kapal. Sebelum kapal dapat diregister di BKI, maka kapal tersebut harus...
Post a Comment
Read more

Vacancy Logistik Bayan Resource Group

We are one of the biggest coal mining companies in Indonesia. In line with our expansion plans and commitment to grow, we are seeking to recruit high caliber, creative, highly dedicated, and dynamic professional who will be based in our remote area for the position below: Logistic Referring to our telecom, herewith the “requirement” for the position of Logistic Staff as follows : Minimum experience of 3 years Educational attainment Bachelor Degree in Marine Polytechnic Ms Windows,Power point proficient Male, Single, 25-40 years old Please send your detail resume include your current salary and your expected salary to this email address: recruitment@bayan.com.sg
1 comment
Read more

INCOTERM 2010

In 2010, the International Chamber of Commerce (ICC) updated the previous version of INCOTERMS (2000) in order to adapt these commercial tools to the new global and computerized economy as well as to evolutions of transport and logistics. These rules have been applied since January 1st, 2011. INCOTERMS (International Commercial Terms) define the seller and buyer’s obligations in a commercial transaction. They aim to fix some international and homogeneous rules by inserting contractual dispositions mainly used in external trade contracts. We can therefore avoid or at least significantly limit uncertainties surrounding controversial interpretations of some clauses in different countries. These rules have been created by the ICC in 1936 and have been then regularly updated according to the use. Whether these rules are not mandatory, they are valuable assets to international commerce operators. INCOTERMS indicate precisely the obligations, distribution of expenses and risks relevant to...
1 comment
Read more