A Letter of Instruction Format (LOI) is a document used to provide detail and intent behind the structure of a business transaction. It is often used in cases where the formation, management, or dissolution of a company are being discussed, as well as when there are changes in ownership or major decisions like mergers and acquisitions. This document helps ensure that all parties understand the parameters and objectives of the deal. It offers clarity on who has what responsibilities and how certain agreements should be fulfilled. Additionally, it can protect both companies involved from legal repercussions. By using an LOI, businesses can confidently enter into negotiations with their eyes open and their interests protected.