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4. LOI as a Source or Promoter of Undue Litigation. Aside from the legal problem of the ambiguity and uncertainty inherent in LOI, there is yet another major problem inherent in the document, from a legal standpoint. Namely, precisely because the LOI is basically ambiguous and non_definitive by nature, the document often easily lends itself to different interpretations and understandings at the hands of different parties (or even the courts), and thus lends itself, in turn, to being a fertile source for undue litigation and legal contests for those involved with the use of that document in their transactions.

A Letter of Intent Sample Can Be a Non_Binding Contract. A letter of intent can be considered as a non_binding contract between two parties and generally contains the information that they have agreed upon and can in fact be a precursor to a contract. This is a very commonly used form letter and in essence states that a person or a company intends to take part in a particular action or activity. If you have never written one you may want to look online for a letter of intent sample to learn how to write one that is effective and will get the results you need.

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