However, during the same period, on January 6, another oil company, Texaco, came into the picture as it publicly announced that Texaco and Getty Oil would merge. Pennzoil protested the proposed merger, and Getty Oil filed a law suit for the court to issue a declaratory judgment that it was not bound by any contract it had with Pennzoil.
Letters of intent are important in business relationships for they have many uses. For example, they are a form of proof to investors who want to know about the deals that the company has signed. They can get information on current business relationships.