letter of intent

Term of the Day - letter of intent


A letter from one company to another acknowledging a willingness and
ability to do business. A letter of intent is most often issued as
acknowledgment of the fact that a merger between companies or an
acquisition is being considered seriously. Sometimes, a letter of intent
may also be issued by a mutual fund shareholder to indicate that he/she
would like to invest certain amounts of money at certain specified times.
In exchange for signing a letter of intent, the shareholder would often
qualify for reduced sales charges. A letter of intent is not a contract and
cannot be enforced, it is just a document stating serious intent to carry
out certain business activities.


SATBIR SINGH
PRESIDENT
MEMBER JAB WE MET CA
REDEFINING PROFESSIONALISM……


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