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Kalogredis calls that basic fact that a document generally viewed by many as a casual and non_binding document, could atimes still become binding under certain unpredictable circumstances, "one of the traps in a letter of intent," and adds: "My advice [to parties contemplating having an LOI] is to proceed with caution before signing any such document. As a general rule (and there are exceptions), I urge the parties to go right to the final documents and "dot all of the I's and cross all of the T's," rather than go through this interim step of a letter of intent, which has many potential traps."

Some brokers advise to skip the LOI and go straight to the purchase agreement and an LOI is not typically used in the market at large. So, why do we advocate the use of an LOI when purchasing a business?

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