A business letter of intent can be used in a number of situations including a commitment to purchase something, usually a business. It is also referred to as s Memorandum of Agreement (MOA) or Memorandum of Understanding (MOU).
Another recent decision of the Supreme Court addresses two key points. The first is the need to have agreed contract terms, before work starts under a contract and the second that, where a letter of intent is signed and work starts due to it, that a contract must be finalized as soon as possible after that. In this case, the parties entered into a contract formed by a letter of intent. When the letter of intent expired the work continued on, before the terms of the detailed written contract had been finalized.