Contracts
An NC 'letter of intent' (LOI) in a commercial real estate transaction is generally:
AA binding contract equivalent to a purchase agreement
BA non-binding expression of intent to negotiate, outlining key deal terms✓ Correct
CRequired before any offer can be made
DA legally binding option to purchase
Explanation
A letter of intent in commercial real estate is typically non-binding — it outlines the parties' intent and key terms as a basis for negotiation of a formal purchase and sale agreement.
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