These are but a few of the possible issues that you need to keep in mind when drafting up a business letter of intent. And, although it can be an expensive exercise, you really should consult your lawyer before you commence.
The Key to an Effective Letter of Intent. A letter of intent, or LOI, is a document that outlines an agreement between two or more parties before the agreement is finalized. A Letter of Intent resembles a written contract, but generally are not binding upon the parties. The purpose of an Letter of Intent may be to clarify the key points of a complex transaction for the convenience of the parties, to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal, or to provide safeguards in case a deal collapses during negotiation