Dear User,
An explaination for LOI
A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized. The concept is similar to the so-called heads of agreement. Such agreements may be Asset Purchase Agreements, Share Purchase Agreements, Joint-Venture Agreements and overall all Agreements which aim at closing a financially large deal.
LOIs resemble written contracts, but are usually not binding on the parties in their entirety. Many LOIs, however, contain provisions that are binding, such as non-disclosure agreements, a covenant to negotiate in good faith, or a "stand-still" or "no-shop" provision promising exclusive rights to negotiate. A LOI may also be interpreted as binding the parties if it too closely resembles a formal contract.
The purposes of an LOI may be:
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to clarify the key points of a complex transaction for the convenience of the parties
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to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal
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to provide safeguards in case a deal collapses during negotiation
Definitely, you can send a notice through a lawyer. LOI should not hold good as contract agreement. If they do not settle through notice, you can definitely file a suit against them.
Feel free to contact me, if you need further details / clarifications
Thanks
Nagaraj
Trademark Attorney & IP Lawyer
IP Lex Global Services
Email: nagaraja_bs@iplexglobal.in
Mob: 9902007635
