LOI is a Legally Worthless Document That Means Virtually Nothing As a practical matter, in legal terms, the Letter of Intent is a worthless and meaningless document. The LOI is a badly flawed legal document. This is because the document is, as one experienced contract law expert put it, "an agreement to agree which is non_binding and non_enforceable as a contract."
I had a project recently where the director was lifelong friends with a break_out star, who had committed to doing the film. The agency was non_committal. Why? Because the agency didn't want to tie_up a month of the actor's time for a measly million bucks, when they could be getting 5┦x that from a studio for the same time slot. At the end of the day, a lot of money and time was spent pre_selling territories and shoring up the financing, only to have the star drop out, under target CAA's ('er I mean a random agency's) pressure.