Document background
The Contractual Letter of Intent (LOI) is a crucial preliminary document in Nigerian business transactions, commonly used before entering into a definitive agreement. It serves as a roadmap for complex negotiations and demonstrates serious intent while maintaining flexibility. Typically employed in mergers and acquisitions, joint ventures, major commercial transactions, and significant business relationships, the LOI outlines key terms, conditions, and expectations. While generally non-binding (except for specific provisions like confidentiality and exclusivity), it must comply with Nigerian contract law principles and relevant sector-specific regulations. This document is particularly valuable in the Nigerian business context where formal preliminary commitments are often required to progress negotiations, especially in high-value transactions or when dealing with international parties.
