A letter of intent or LOI can be used in many different circumstances and is an outline of an agreement between two or more parties before it is finalized. These letters of intent spell out all the particulars so that each company or party entering into the agreement has a better understanding of what is involved. Letters of intent are used in many different faucets of the business world and are similar to a written contract only not as binding. A letter of intent is exactly how it sounds; it is a letter that is stating an intended purpose.
Due diligence: The seller will facilitate the purchaser's due diligence investigation by providing all books, records, contracts, access to important employees as well as all other relevant information of the business.