Contracts
In NH, a 'letter of intent' (LOI) in a commercial real estate transaction:
AIs always legally binding on both parties
BIs typically non-binding but outlines the key terms to be formalized in a binding purchase agreement✓ Correct
CHas the same legal effect as a purchase and sale agreement
DMust be filed with the Registry of Deeds
Explanation
A letter of intent (LOI) in NH commercial real estate is typically non-binding—it outlines the parties' intent and major terms but is not a contract. The parties then negotiate and execute a formal, binding purchase and sale agreement. LOIs should clearly state whether they are binding or non-binding to avoid disputes.
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