The Significance of a Letter of Intent Sample. A letter of intent shows the information that parties have agreed on so that the information is clear to them. The use of this type of letter is widespread and it is almost like a written contract but it is not binding. It states that a person or organization intends to take part in a certain action. If a person or organization wants to get a guide on how to make a good letter of intent, they can get a letter of intent sample, which is available at many online sites.
Another contract law attorney, Ivan Hoffman of California, makes essentially the same point: "Parties to a transaction sometimes intentionally create a letter of intent as an expression of what they intend to agree upon should certain circumstances arise... [whatever happens], the document will not be binding and thus not enforceable until those circumstances arise. Thus, the letter of intent is essentially a legally worthless document. It is not clear to me the reason any party would ever bother to create such a document and yet I have seen it used on many occasions. If parties to a transaction intend to bind each other, then they should create a binding contract, not a letter of intent. If the parties to a transaction do not intend to bind each other, then why bother creating a document that is not binding?