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A letter of intent (LOI or LoI, or Letter of Intent) is a document outlining the understanding between two or more parties which they intend to formalize in a legally binding agreement. The concept is similar to a heads of agreement , term sheet or memorandum of understanding .
In either case, your status will be confirmed by a letter or statement indicating you have been conditionally approved. Common causes of conditional approval You could receive a conditional ...
In contract law, there are established rules and principles for various issues concerning contract formation, such as cross offers, [5] awareness of offer, [6] notification of acceptance, [7] timing of acceptance, [8] and postal rule. [9] Power of acceptance is part of the contract formation analysis, and which concerns the validity of acceptance.
If there is any variation, even on an unimportant point, between the offer and the terms of its acceptance, there is no contract. In the United States, the Uniform Commercial Code provides for acceptance even when terms of the acceptance differ from terms of the offer. This might occur, for example, when a buyer's "Terms and Conditions" differ ...
A set of heads of agreement, heads of terms, or letter of intent is a non-binding document outlining the main issues relevant to a tentative sale, partnership, or other agreement. [ 1 ] A heads of agreement document will only be enforceable when it is adopted into a parent contract and is subsequently agreed upon, unless otherwise stated.
C immediately acquires a conditional right, from which A is able to release B until the moment of acceptance, when the right of A to release B is extinguished. [2] In either case, a third-party contract differs from agency in that the promisee acts in his own name and for himself, whereas an agent or representative does not.
The difference between the two is slight and mostly a matter of style: an LOI is typically written in letter form and focuses on the parties' intentions; a term sheet skips most of the formalities and lists deal terms in bullet-point or similar format. There is an implication that an LOI only refers to the final form.
An interesting implication of the operation of the posting rule is that an acceptance is complete once the letter of acceptance is posted; it makes no difference whether the offeror actually receives the letter. This was demonstrated in Byrne v Van Tienhoven (1880) 5 CPD 344. If a letter of acceptance were to be lost, acceptance has still taken ...