{"componentChunkName":"component---src-templates-blog-post-ts","path":"/blog-bite-what-is-the-nature-of-transaction-letters-of-intent/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"07569981-f111-561e-92b0-c31381f33866","excerpt":"This article posted on our partner site Mondaq.com explores the nature of transaction letters of intent or (LOI’s).  An LOI is typically used as the first step…","html":"<p><a href=\"http://www.mondaq.com/canada/x/308054/Securities/Transaction+Letters+Of+Intent\" target=\"_blank\" rel=\"nofollow noopener\">This article posted on our partner site Mondaq.com</a> explores the nature of <strong>transaction letters of intent or (LOI’s)</strong>. </p>\n<p>An LOI is typically used as the first step of a deal and should briefly outline the key elements of the proposed transaction (e.g. selling or purchasing a business). In order to expedite the <em>initial negotiation process</em> LOI’s are generally intended to be non-binding in regards to business terms. This is based on the understanding that a more detailed, definitive and binding agreement will be drafted. LOI’s should be taken seriously. An LOI can be referred to should one party wish to deviate from a business term when finalizing the binding agreement. </p>\n<p>Certain terms of an LOI are typically specified to be legally binding (i.e. confidentiality and “no shop” clauses). Explicit expectation of more comprehensive and legally binding agreement is crucial in transaction LOI’s.</p>","frontmatter":{"title":"Blog Bite: What is the nature of transaction letters of intent?","date":"November 09, 2017","description":"This article posted on our partner site Mondaq.com explores the nature of transaction letters of intent or (LOI's). An LOI is typically used as the first step of a deal and should briefly outline the key elements of the proposed transaction.","author":{"id":"alina@clausehound.com","first":"Alina","last":null,"bio":null,"image":null},"tags":["Term Sheet","Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq"]}}},"pageContext":{"slug":"/blog-bite-what-is-the-nature-of-transaction-letters-of-intent/","previous":{"fields":{"slug":"/blog-bite-when-is-a-letter-of-intent-binding/"},"frontmatter":{"title":"Blog Bite: When is a letter of intent binding?","tags":["Term Sheet","Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq","Investor Term Sheet","Memorandum of Understanding"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}},"next":{"fields":{"slug":"/blog-bite-mergers-acquisitions-what-are-the-legal-obligations-of-a-non-binding-letter-of-intent/"},"frontmatter":{"title":"Blog Bite: Mergers & acquisitions - what are the legal obligations of a non-binding letter of intent?","tags":["Term Sheet","Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq","Investor Term Sheet","Memorandum of Understanding"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}}}}}