Letter of Intent
Also called: LOI, term sheet, heads of terms, MOU
A letter of intent sets out the headline terms of a deal before the binding contract — price, structure, timetable, exclusivity. Most of it is deliberately non-binding, with a few clauses that aren't: exclusivity, confidentiality and cost allocation. Its real function is to anchor the negotiation and to lock the seller out of talking to anyone else while the buyer spends money on diligence.