A Letter of Intent (LOI) is a document confirming the intent of a buyer and seller in a transaction or the intent of an investor to participate in a round of financing, though it is generally called a term sheet in this case (while an LOI is typically used in the acquisition context). An LOI will also usually contain the material terms of the transaction. By signing an LOI, both parties agree to begin the legal and due diligence process prior to the closing of the transaction.
ACCELERATE YOUR STARTUP LAW KNOWLEDGE!
Startup Law doesn’t have to be a confusing maze. The practical knowledge in "Acceleration: What All Entrepreneurs Must Know About Startup Law" will help you make the smart decisions to protect your startup and its future. Available in ebook and hardcover.
Buy the Book on Amazon