Contracts
What is a 'letter of intent' (LOI) in Delaware commercial real estate?
AA legally binding purchase contract for commercial property
BA preliminary, typically non-binding document outlining the key proposed terms of a transaction — used to confirm mutual interest and guide negotiation of the formal contract✓ Correct
CA letter from the buyer's lender confirming intent to fund the loan
DA formal notice from a party intending to terminate a lease
Explanation
A letter of intent (LOI) outlines the principal terms of a proposed transaction — price, due diligence period, contingencies, closing timeline — before the parties draft the formal purchase agreement or lease. LOIs are typically non-binding on the main transaction terms but may contain binding provisions (confidentiality, exclusivity).
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