4. LOI as a Source or Promoter of Undue Litigation. Aside from the legal problem of the ambiguity and uncertainty inherent in LOI, there is yet another major problem inherent in the document, from a legal standpoint. Namely, precisely because the LOI is basically ambiguous and non_definitive by nature, the document often easily lends itself to different interpretations and understandings at the hands of different parties (or even the courts), and thus lends itself, in turn, to being a fertile source for undue litigation and legal contests for those involved with the use of that document in their transactions.
While drafting a business letter of intent, there's a number of issues you need to consider _ 1 _ It's best mentioned that it is a non_binding document. Information surrounding the issue should be restricted to the absolute minimum whilst remaining in accordance with the document. The other party or parties may become impatient & seek legal advice if you don't stick to the rules.