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."
Bankruptcy Letter of Intent. Just like anything else in life, if you are planning a drastic change you should probably inform those who will be affected. The importance of keeping people informed is a requirement in some circumstances. A "letter of intent" is used in these situations. This letter informs companies or the public that future legal proceedings will occur.