A Letter of Intent is a preliminary agreement between two or more parties that outlines the basic terms and conditions of a proposed transaction or business deal. It is commonly used in situations where the parties are still in the process of negotiating the final agreement, and the Letter of Intent serves as a guide or roadmap for the negotiations. The purpose of the Letter of Intent is to express the intent of the parties to enter into a formal agreement and to establish the basic terms and conditions that will govern the transaction.
While the Letter of Intent is not a legally binding agreement, it can be used as evidence of the parties' intent to enter into a formal agreement, and it can help to streamline the negotiation process by providing a clear framework for the discussions.
