Letter of intent Meaning and Definition
Pronunciation
/ˈlɛtər əv ɪnˈtɛnt/
Part of Speech
Noun or Verb
Definition
A written statement of a person’s or company’s willingness to do something, such as buy or sell something, if certain conditions are met. A letter of intent is often a preliminary document to a more formal agreement.
Examples
- The company sent a letter of intent to acquire the rival firm.
- The letter of intent outlined the terms of the deal, including the purchase price and payment schedule.
- The letter of intent was signed by both parties, marking the start of the negotiation process.
- The investor received a letter of intent from the company, committing to invest $1 million in the project.
Etymology
The term “letter of intent” originated from the medieval practice of writing letters to express one’s intentions or plans. The phrase has been in use since the 16th century, with the first recorded use in 1552.
Usage Notes
A letter of intent is a legally non-binding document, but it can serve as a formal expression of one’s intentions. It is often used in business transactions, such as acquisitions, partnerships, or investments.
Cultural References
The term has been featured in various cultural references, including films, literature, and music. For example, the 2010 film “The Social Network” referenced a letter of intent in the story of Facebook’s founding.
Idiomatic Expressions or Phrases
Preliminary agreement, non-binding document, expression of intent
Related Words or Phrases
Letter of intent, agreement, contract, commitment, memorandum of understanding
Collocations
letter of intent for, letter of intent to, signing a letter of intent, receiving a letter of intent
Frequency of Use
The term “letter of intent” is often used in business and legal contexts, making it a relatively common phrase in modern language.
Common Misspellings
Lettsr of intent, Letter of Intnt, Lettel of intent