What is the letter of intent? The letter of intent states an understanding of the proposed terms of the impending sale between the two parties. It is not merely a preliminary document that defines the terms and conditions of a proposed sale but is also not a legally binding contract nor is it enforceable in a court of law. It does, however, specify the rights and obligations of the parties concerned. The parties are only stating that they intend to enter into an agreement, the contents of which are covenants that will later bind the parties together in their proposed business acquisition.
It is important that the description for the type of information is specific to what is being confidentially disclosed. As an example a software company working in the field of transportation systems might say; "The information being disclosed is a concept for passing waybills from carrier to carrier using mobile phone technology". This is by far preferential to saying "The information being to disclosed is information relating to software for transportation carriers". Anyone charged with determining whether confidential information is being disclosed is more able to make the assessment when the description is more specific.