Letters of Intent
Introduction
A letter of intent (in English letter of intent or LOI or "Term Sheet") is a document that describes an agreement between two or more parties, which contains commitments that can later be formalized through a contract.[1] The concept is similar to the so-called "Bases of Agreement".[2] These agreements can be: Goods Purchase Agreements, Share Purchase Agreements, Joint Venture Agreements and other types of Agreements that have the objective agree on large-scale financial deals.[3].
Letters of intent are similar to written contracts, but are generally not binding on the parties as a whole. However, numerous Letters of Intent have provisions that are enforceable, such as confidentiality agreements, an agreement that it is negotiated in good faith, or "stand-still" or "no-shop" clauses that establish exclusive rights during the negotiation.[3] A letter of intent can also be interpreted as binding between the parties if its content closely resembles that of a formal contract.[4].
Goals
The most common reasons for using a letter of intent are:[5].
When two parties are about to begin a collaboration, the first step for them is to define the details. You don't want to close a deal without knowing what to expect, what your role will be, and the overall structure. This is where the letter of intent (LOI) comes into play.[9].
In the academic field, the letter of intent, also often called a statement of intent, is part of the admission process to certain graduate programs.[10][11][12] These letters often play a key role in the decision of admission committees, which seek to understand the applicant's academic and professional objectives and their suitability for the program. This document, similar to a cover letter for a job application, statement of intent, or introductory essay, typically describes the candidate's academic journey, their passion for their chosen area of study, and how the specific master's program will help them achieve their career goals.
Possible disadvantages of using an LOI may include:.
References
- [1] ↑ Letters of Intent and Other Precontractual Documents: Comparative Analysis and Forms Hardcover – December, 1994. Ralph B. Lake, Ugo Draetta. 330 pag. Lexis Law Pub; 2 edition (1994).
- [2] ↑ http://www.globalnegotiator.com/blog/wp-content/uploads/2013/03/Que-es-una-Carta-de-Intenciones.pdf Qué es una carta de intención?: http://www.globalnegotiator.com/blog/wp-content/uploads/2013/03/Que-es-una-Carta-de-Intenciones.pdf
- [3] ↑ a b Contract Formation and Letters of Intent: A Comparative Assessment. Michael Furmston, T. Norisada, Jill Poole. 358 pag. Wiley; (1998). ISBN 0471952389, ISBN 978-0471952381.
- [4] ↑ http://www.abogae.com.ar/carta-de-intenciones-su-diferencia-con-el-precontrato-y-el-contrato-definitivo (enlace roto disponible en Internet Archive; véase el historial, la primera versión y la última).: http://www.abogae.com.ar/carta-de-intenciones-su-diferencia-con-el-precontrato-y-el-contrato-definitivo
- [5] ↑ «Letter Of Intent: What You Need to Know (Simple Guide to LOIs in Canada)». www.rbhf.ca. Consultado el 14 de octubre de 2025.: https://www.rbhf.ca/letter-of-intent-what-you-need-to-know/
- [6] ↑ «Letters of Intent - Why do they Matter and When are they Binding?». batchmewing.com.au. Consultado el 14 de octubre de 2025.: https://batchmewing.com.au/letters-of-intent-101/
- [7] ↑ «Letter of Intent (LOI): What Is It & Why Do I Need One?». pacifichealthlaw.com. Consultado el 14 de octubre de 2025.