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LOI Concept

Former Member
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Hi

Wats that LOI - Letter of Intent concept in SAP. How can we make this?

How this will be use and help in MM area.

Vijay

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi

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:

to clarify the key points of a complex transaction for the convenience of the parties

to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal

to provide safeguards in case a deal collapses during negotiation

A LOI may also be referred to as a memorandum of understanding (MOU), term sheet or discussion sheet. Although the terms refer to different documents, the differences are often formal in nature, reflecting different drafting styles or business customs, not a substantive difference in what these various documents accomplish.

So in SAP LOI can be a Purchase order or a contrcat or a scheduling agreement based on the busines & the parties involved in it.

Thanks & Regards

Kishore

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi

Any other from any one pls... Reg LOI...

Vijay