Ziad K. Abdelnour, President & CEO Blackhawk Partners, Inc, the New York_based advisory firm on such matters, puts it this way: "Giving a Letter of Intent only means 'Yes I'm intent to buy the goods but I can change my mind anytime.' A letter of Intent is not a binding contract. [Hence] The Letter of Intent is a total waste of time on a worthless piece of paper."
Confidentiality Agreement. A confidentiality agreement is a "first date" agreement.. Often the two parties have had little business dealings with each other prior and the purpose of the discussions is to determine whether there is a mutual interest in what is being discussed. Note however that it is just as necessary to have a confidentiality agreement when the parties know each other well. Discussions under confidentiality allow the information receiving party to stay "Stop, let's not take this discussion further as I am already doing what you are disclosing to me".