A Letter of Intent (LOI) is a document that outlines the preliminary understanding between two parties before a formal agreement is finalized. It typically includes the main terms and conditions of a proposed deal, such as the scope of work, timelines, and any financial considerations. While not legally binding, an LOI serves as a roadmap for negotiations and helps clarify the intentions of both parties. LOIs are commonly used in various fields, including real estate, business transactions, and academic admissions. They can help streamline the negotiation process by ensuring that all parties are on the same page before committing to a more detailed contract.