LC – Letter of Credit
A standard, commercial letter of credit (LC) is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking.
The letter of credit can also be source of payment for a transaction, meaning that redeeming the letter of credit will pay an exporter.
Letters of credit are used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another. Read more »
LOI – Letter Of Intent
A letter from one company to another acknowledging a willingness and ability to do business. A letter of intent is most often issued as acknowledgement of the fact that a merger between companies or an acquisition is being considered seriously.
Sometimes, a letter of intent may also be issued by a mutual fund shareholder to indicate that he/she would like to invest certain amounts of money at certain specified times. In exchange for signing a letter of intent, the shareholder would often qualify for reduced sales charges. A letter of intent is not a contract and cannot be enforced, it is just a document stating serious intent to carry out certain business activities.
MoU – Memorandum of Understanding
A memorandum of understanding (MOU or MoU) is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in situations where the parties cannot create a legally enforceable agreement. It is a more formal alternative to a gentlemen’s agreement.
Proforma Invoice Forms Templates
A Proforma invoice is an invoice provided by a supplier in advance of providing the goods or service. A quotation in the form of an invoice prepared by the seller that details items which would appear on a commercial invoice if an order results.
Purchase Agreement
Purchase agreement is a legal document that outlines the terms and conditions connected with a transaction that includes the act of purchasing goods or services. Generally, the terms of a purchase agreement involve identifying specific conditions that both the buyer and the seller agree to meet and perform as part of the transaction.
