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Unique Letter Of Intent For Product Demonstration

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SUMMARY. Put very simply, as a legal or even business document, it's hard to image any document that could be as beset with so many near_crippling legal flaws, traps and pitfalls for its signer, as the LOI. Consequently, it comes as no surprise that in the REAL world of international buying and selling of crude oil, while the crude sellers and their army of sales_obsessed aggressive brokers and agents may generally be infatuated with the idea of having the LOI document widely and routinely used by prospective crude buyers to initiate their purchasing offers, nothing, on the other hand, could be more disliked, more unacceptable or unwanted by most crude buyers, particularly the more credible and substantive lot.

When the buyer presents a Letter of Intent (LOI) instead of an Offer to Purchase, you do not have as strong of an offer and the percent of such offers that actually close will reduce. It is also difficult to get buyers to make an earnest money deposit on a Letter of Intent. The major problem is these agreements usually require that the seller cannot look at any other offers for a period of 30╉ days while the buyer is reviewing the records of the business. Many Letters of Intent will have a financing contingency. When the owner is offering substantial seller financing, there should be minimal contingencies for financing.

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