A Letter of Intent (LOI) on the other hand, is generally used as a "starting point" of discussion when purchasing real estate. It is a great tool to use to begin discussions, and usually is followed up with a formal Purchase and Sale Agreement.
Merger and Acquisitions Series _ Non_Binding Letter of Intent. One of the first steps in the merger and acquisition ("M&A") process after executing a confidentiality agreement ("Confi") or non_disclosure agreement ("NDA") is the issuance of a non binding letter of intent. A letter of intent, referred to as the "LOI", is a legal document that is provided to show interest in progressing with a transaction, such as to purchase, joint venture or merger.