Which is Better: An Offer to Purchase or Letter of Intent? First, let's define the two, then I'll discuss when to use a Letter of Intent. 1. Purchase Offer, or Purchase Agreement _ A legal document that describes the price, terms, contingencies, and other details of how a buyer would be willing to purchase a piece of real estate. 2. Letter of Intent (LOI) _ A preliminary document outlining the price, terms, and other transaction details that a buyer would be be interested in purchasing a piece of real estate.
A confidentiality agreement puts each party on notice that what is being discussed is solely for each party and only for the stated purpose within the agreement. The critical elements within the confidentiality agreement are therefore that parties must specifically state the type of information that is being disclosed and also the intended purpose for which the information is to be used.