Contracts

In New York, a 'letter of intent' (LOI) in a commercial real estate transaction is typically:

AA binding purchase contract
BA non-binding expression of interest and preliminary terms, subject to negotiation of a formal contract✓ Correct
CRequired by law before a contract can be signed
DEnforceable as a lease

Explanation

A letter of intent in commercial real estate sets out preliminary terms and is typically stated to be non-binding. It facilitates negotiation without creating binding obligations until a formal contract is signed.

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