A Letter of Offer and Acceptance (LOA) is a formal document between one or more parties that outlines an agreement. It is typically used when making a major purchase, like a house or car, or signing a contract with a business partner. An LOA serves as a written record of the details of the transaction, including what has been agreed upon by both parties in terms of price, payment schedules, any warranties, and other particularities related to the purchase or contract. Moreover, it provides legal protection for both parties involved should there be any dispute down the line. By signing an LOA, all parties agree that they understand and accept the conditions stated therein – thus adding an extra layer of security and reducing potential risk associated with the transaction.