A letter of intent (LOI) is similar to a memorandum of understanding (MOU) in that it is a standard agreement between businesses (including startups) and potential customers to define commitment, interest, terms, and pricing in writing before delivering the goods or services. This document is used to clarify the understanding of both the customer and founder and is often used to show investors. LOI and MOU agreements are used interchangeably and usually non-binding. At times, in working with customers on large projects with multiple phases where the customer and business work together before payment and services are exchanged, an MOU may be used before a LOI is used to define pricing and terms. Also, see Memorandum of Understanding (MOU)
A letter of intent (LOI) is similar to a memorandum of understanding (MOU) in that it is a standard agreement between businesses (including startups) and potential customers to define commitment, interest, terms, and pricing in writing before delivering the goods or services. This document is used to clarify the understanding of both the customer and founder and is often used to show investors. LOI and MOU agreements are used interchangeably and usually non-binding. At times, in working with customers on large projects with multiple phases where the customer and business work together before payment and services are exchanged, an MOU may be used before a LOI is used to define pricing and terms. Also, see Memorandum of Understanding (MOU)
