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).
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."