Binding LOI

**Binding LOI**

A Binding Letter of Intent (LOI) is a formal document outlining the preliminary terms and conditions agreed upon by parties before finalizing a contract. Unlike a non-binding LOI, a Binding LOI carries legal obligations, ensuring that the parties commit to the key aspects of the deal. It is commonly used in business transactions such as mergers, acquisitions, partnerships, and real estate agreements to establish clear expectations and protect the interests of all involved until the definitive agreement is executed.