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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

Among Internet based brokers and agents the LOI is commonly advanced as a leading inquiry document.This protocol is utterly incorrect, and misuse of the LOI is often seen by experienced Exporters as a mark of an amateur.Letters of Intent are not standard international business documents, though they do legitimately pop up rarely, much less often than most brokers believe.

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