LOI

Apr 11, 2012   //   by Administrator   //    //  Comments Off

Letter of Intent – A letter of Intent is supposed to inform a supplier of the intent of the buyer, that the buyer really wants to purchase. A letter of Intent is a non binding document issued by the buyer. Often a seller will hope to secure the sale with a letter of intent. Now let me ask, is a non binding document a security of anything? No. It is only the offer, signed by the buyer that is binding by International and English standing law. Often sellers hope to, at the same time, get the banking information of the buyer, but why would the buyer offer banking instruments if he doesn’t even know if there is a real product being offered? Only the Signed Offer tells the buyer the intent of the supplier. He does not know if there is a seller or if the seller even wants to sell a product unless he gets a signed offer from the seller. Now, what have the courts said in this matter. There have been instances where the buyer has been sued and damages awarded even though he didn’t know if there was product being offered. You can see the mess this document offers – you can get sued for sending a non binding document when you don’t even know if there is a real product that the supposed seller may be holding. Nigerian Oil Services does not send a Letter of Intent to anyone. Nigerian Oil Services does not offer banking details when we have no knowledge if a seller is real or if the seller actually has product or if the seller really wants to sell.

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