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But intentions are not binding contractual conditions. Nor need they lead up to binding contractual conditions. Moreover a letter expressing intent, in its form, does not adequately suggest what the appropriate response should be. Whereas a Request for Quotation / RFQ quite literally is a Request..

Some brokers advise to skip the LOI and go straight to the purchase agreement and an LOI is not typically used in the market at large. So, why do we advocate the use of an LOI when purchasing a business?

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