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However, during the same period, on January 6, another oil company, Texaco, came into the picture as it publicly announced that Texaco and Getty Oil would merge. Pennzoil protested the proposed merger, and Getty Oil filed a law suit for the court to issue a declaratory judgment that it was not bound by any contract it had with Pennzoil.

Letter of Intent. A letter of intent is an important document that sits neatly between a confidentiality agreement and a final commercial contract being signed. Following disclosure of information under confidentiality the next step in the process is for the parties to determine whether they wish to proceed to a commercial business relationship. The letter of intent signals to both parties that they wish to enter into a relationship subject to conditions being satisfied.

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