Letter of Intent (LOI)

Venture capital

A Letter of Intent (LOI) is a document in which the intentions of the involved parties to proceed with a planned transaction are laid out.

PXR team portrait overview daniel
Corporate/M&A Lawyer and Authorised Signatory

It establishes the framework for the negotiation process, often without detailing contract terms as comprehensively as in a term sheet.

Generally, an LOI is not legally binding, but, for practical reasons regarding the further negotiation process it is advisable to adhere to its contents.