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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.

Both agreements are legal and binding documents and are subject to clauses and conditions of the document, when signed by both the buyer and seller. An offer to purchase is more common in small transactions and the letter of intent is more common in large transactions.

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