Contracts
In New Mexico, which of the following is TRUE about a 'letters of intent' (LOI) in commercial real estate?
AAn LOI is a fully binding purchase contract
BAn LOI is typically non-binding and expresses the parties' intent to negotiate a future binding agreement✓ Correct
CAn LOI is required for all commercial transactions
DAn LOI must be notarized to be valid
Explanation
Letters of intent are typically non-binding expressions of interest and preliminary terms used to guide negotiations before a formal, binding purchase contract or lease is drafted.
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