ILLUSTRATION: MARK FISHER

You'll frequently see LOIs used in real-estate transactions, business negotiations, college-admissions processes, and more. In the event-management world, you might find people using an LOI to stipulate agreements between venues and the corporate entities hosting an event. Often a precursor to a contract, an LOI can help clarify the points of a deal and illustrate both parties' intentions to continue forward progress toward a more binding agreement.