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A confidentiality agreement puts each party on notice that what is being discussed is solely for each party and only for the stated purpose within the agreement. The critical elements within the confidentiality agreement are therefore that parties must specifically state the type of information that is being disclosed and also the intended purpose for which the information is to be used.

LOIs are beneficial to both the buyer and seller. The fundamental goal of the LOI is to confirm that a 'meeting of the minds' has been reached prior to both parties making the large investments of time, energy, and expense required to execute a Definitive Purchase Agreement (DPA), aka Asset Purchase Agreement (APA).

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