Letter of intent revisit
A letter of intent (LOI), also called a term sheet, expression, or indication of interest in the commercial sectors is an informal offer or recap of the parties’ position on how they would proceed on a business proposal or venture. In the shipbuilding and offshore industry, where discussions on technical, commercial, and legal matters leading up to a formal contract are complex and lengthy, letters of intent (LOIs) will often be used as the prelude to the formation of a formal contract. Thus, LOIs will be used: · Where the scope of work has been identified, but there are still outstanding items like the selection of main engine suppliers, financing, guarantees, and board approvals that need to be finalized. · At other times, LOI may be signed on condition that the parties will enter into a shipbuilding contract after the buyer’s bid for a shipbuilding project is successful, or where the parties intend to bid for a project jointly. (The intent of such LOIs is to secu