A letter of intent (LOI) is a document that summarizes the understanding between two or more parties regarding a potential transaction. LOIs are commonly used when the parties are contemplating a merger-acquisition, joint venture, real estate purchase or lease, or other significant transaction. An LOI outlines the general terms of the deal, often with the stated understandings that the specific terms of any deal are subject to further negotiation, and that the parties are not obligated to complete a transaction. Because the parties will likely be disclosing confidential information—including the fact that they are having such discussions—the LOI should usually include confidentiality and nondisclosure terms.

In Alaska, as in other states, a Letter of Intent (LOI) is a preliminary document that outlines the basic terms and understanding between parties who are considering entering into a formal agreement, such as a merger, acquisition, joint venture, or real estate transaction. The LOI typically includes key points of the proposed deal, such as the structure, price, and timeline, but it is generally not legally binding in terms of compelling the parties to finalize the transaction. However, certain clauses within the LOI, like confidentiality and nondisclosure terms, can be binding if they are explicitly stated as such. The purpose of these terms is to protect the sensitive information that may be exchanged during negotiations. It is important for parties in Alaska to carefully draft and review LOIs to ensure that their intentions regarding the binding or non-binding nature of the document are clear and to seek guidance from an attorney to avoid unintended legal obligations.