One of the reasons for this is that you don`t want to take the time to negotiate a sales contract unless you have a deal. Most LOIs are never signed and never become contracts because the parties fail to agree on the purchase price and other important terms. As a result, the Memorandum of Understanding is a delicate step in negotiations between buyer and seller; The parties endeavor to agree on issues such as the price, the overall date of the transaction and whether the buyer should commit to purchase before the end of its due diligence. The dispute over tax compensation, jury fees and payment of trust fees can wait. Speaking of closing, the sales contract should state in detail how it will work. Many business jets are sold in «trust» where a fiduciary agent (usually in Oklahoma City, Oklahoma, near the U.S. Aircraft Registry) holds all important documents and funds and pays money «simultaneously» on instruction and delivers registration documents to the United States. . . .
Aircraft Pre-Buy Agreement