Contrary to the sellers' and their super sales_conscious agents' familiar claim that "There is nothing to lose in signing those documents," quite the complete opposite is true _ namely, a great deal, in fact, could potentially be lost particularly by the buyer by signing an LOI to a supposed seller. Why? In a word, this is because the LOI is actually fraught with many incalculable legal flaws, traps and pitfalls, much of which could often be prohibitively costly for the buyer, according to legal authorities and contract law experts. (See below for more on this)
The letter of intent sample can serve as a good guide on how to draft a letter of intent. Organizations can use this letter in certain situations including the following. They can use it as a safeguard or form of security in case their agreement does not go well. They can also use the letter to make the points of their agreement clear. The other situation would be to declare the parties involved in the agreement.