Some of these instances include: Schools: Many times a school will require a letter of intent when a new club or group is forming. Expansion or downsizing: Letters of intent are sometimes used to let employees of large firms know that the company plans on either expanding or downsizing certain departments.
The Key to an Effective Letter of Intent. A letter of intent, or LOI, is a document that outlines an agreement between two or more parties before the agreement is finalized. A Letter of Intent resembles a written contract, but generally are not binding upon the parties. The purpose of an Letter of Intent may be to clarify the key points of a complex transaction for the convenience of the parties, to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal, or to provide safeguards in case a deal collapses during negotiation