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How Letter of Intents Are Used in Business Acquisitions. A letter of intent (LOI) is a written document that outlines the key terms and conditions of an agreement which will form the basis of a contract, prior to it being finalized. LOI's are typically drafted by a buyer and express their serious interest to enter into a business transaction and continue the discovery further.

The significance of the letter of intent is also seen in the real estate field for it can tell a property owner of a person wishing to buy. It can also play a significant role in cases of disabled persons whose parents have passed on by showing the intention of the parents to the child.

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