Document background
The Letter of Intent (LOI) in Project Management is a crucial preliminary document used in Pakistani business practice when parties are preparing to undertake significant projects but need to formalize their initial understanding before completing full contractual documentation. It serves as a bridge between informal discussions and final agreements, typically used in situations where detailed due diligence, regulatory approvals, or complex negotiations are anticipated. Operating under Pakistani law, particularly the Contract Act 1872 and related commercial legislation, the LOI helps establish the framework for project execution while protecting both parties' interests during the pre-contractual phase. This document typically includes key commercial terms, project scope, timeline expectations, and any binding obligations such as confidentiality or exclusivity provisions. It's particularly relevant in complex projects where multiple stakeholders are involved and where preliminary commitments need to be documented before proceeding with full project development.
