HOW VALID, OR OTHERWISE, ARE THESE USUAL RATIONALE BY SELLERS OR THEIR AGENTS? Ironically, while oil sellers and their agents frequently demand that prospective "serious" buyers involved in crude oil transactions should first offer an LOI, the buyers, on the other hand, are not generally enamored of that idea.
Many individuals will use the terms Letter of Intent, Memorandum of Understanding, and Term Sheet interchangeably, however there are slight, mainly style, differences. Memorandum of Understanding (MOU): The main difference between the MOU and LOI is the nature of the signatories. While two parties are involved in a LOI, a MOU can involve more than two parties. Additionally, while a letter of intent needs only the party which proposes the agreement to be a signatory, a MOU implies that all the parties involved have to be signatories.