LETTER OF INTENT

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asrafrana
Posts: 2
Joined: Tue Jul 10, 2012 10:10 am
First Name: Asraful
Last Name: Haque
Organization: Uttara Bank Limited
Filter: Two Plus Two =: 4
Location: Bangladesh

LETTER OF INTENT

Post by asrafrana »

WHY LOI-LETTER OF INTENT NEEDED?
BENEFICIARY IS ASKING APPLICANT FOR SIGNING AN LOI THOUGH THEY ARE DOING IMPORT BUSINESS THROUGH LETTER OF CREDIT. IS THE APPLICANT OR BUYER IS BOUND TO SIGN THAT LOI? WHAT CARE SHOULD BE TAKEN IN THIS REGARD.
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picant
Posts: 1945
Joined: Wed Aug 20, 2008 1:49 pm

Re: LETTER OF INTENT

Post by picant »

Hi Pal,

IMHO, Letter of intent is a pre-contractual agreement, probably concerning delivery of goods, Types, and payment terms where a letter of credit is cited. Letter of intent may serve to obtain credit facility, authorization to export/import.
That will depend on the Countries Trade structure.
Other comments appreciated
Ciao
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