Intangible assets have been argued to be one possible contributor to the disparity between company value as per their accounting records, and company value as per their market capitalization. 1  Considering this argument, it is important to understand what an intangible asset truly is in the eyes of an accountant.
The challenge is that a letter of intent can be, at the same time, both binding and nonbinding. And when drafted to resemble an official contract, even letters of intent that specifically say they are not binding might be held by a court to be binding in whole or in part for a variety of reasons.
BREAKING DOWN 'Letter of Intent-LOI'. The real utility of a letter of intent is that it formalizes a preliminary agreement on a topic before negotiations get underway, it outlines what can and can't be talked about outside of that negotiation and it provides a roadmap describe how things will proceed.EFINITION of 'Letter of Intent-LOI'. Used in most major business transactions, a letter of intent (LOI) outlines the terms of a deal and serves as an agreement to agree between two parties.