The second important element is to clearly state the intended parties outcome from the disclosure. In the example above the intended outcome could be "The information is being disclosed to assess whether XYZ transportation company will pilot the software for use within its fleet". Again it is then clear what the outcome and the nature of the relationship will be. The example above is broad enough to allow some flexibility in discussion in the letter of intent e.g. that perhaps the pilot programme is limited to one territory as negotiations progress, but it must be narrow enough that the outcome is reasonably well known e.g. it is not expected that XYZ transportation become a shareholder in the software company.
A letter of intent or LOI can be used in many different circumstances and is an outline of an agreement between two or more parties before it is finalized. These letters of intent spell out all the particulars so that each company or party entering into the agreement has a better understanding of what is involved. Letters of intent are used in many different faucets of the business world and are similar to a written contract only not as binding. A letter of intent is exactly how it sounds; it is a letter that is stating an intended purpose.