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2.) Some buyers will want to skip the LOI and instead submit a full purchase contract. They figure, why should they pay their lawyer to draw up both documents. But a purchase contract requires a significant amount of time and attorneys fees to draft. Once the buyer has made this big investment in legal fees, it puts a lot of pressure on them that is detrimental to the negotiating process.

It is important that the description for the type of information is specific to what is being confidentially disclosed. As an example a software company working in the field of transportation systems might say; "The information being disclosed is a concept for passing waybills from carrier to carrier using mobile phone technology". This is by far preferential to saying "The information being to disclosed is information relating to software for transportation carriers". Anyone charged with determining whether confidential information is being disclosed is more able to make the assessment when the description is more specific.

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