Define: Letter Of Intent

UK Accounting Glossary

Definition: Letter Of Intent



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Full Definition of Letter Of Intent


A letter of intent is a document written by one company and sent to another indicating a desire and ability to do business. The issuance of a letter of intent often precedes formal negotiations of a merger or acquisition and can potentially impact the share price of both the letter of intent issuer and recipient. Although a letter of intent is not a contract or legally binding, sending a letter of intent generally indicates serious interest. Companies issuing a letter of intent typically disclose this information in a Form 8-K filing with the SEC. Investors contemplating a large investment in a managed fund they plan to make in increments may send a letter of intent in advance of the purchase to qualify for a reduced sales charge.


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Letter Of Intent. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 31, 2020 https://payrollheaven.com/define/letter-of-intent/.
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Letter Of Intent. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/letter-of-intent/ (accessed: March 31, 2020).
American Psychological Association (APA):
Letter Of Intent. PayrollHeaven.com. Retrieved March 31, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/letter-of-intent/

Definition Sources


Definitions for Letter Of Intent are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February 2020.