LETTER OF INTENT
A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized.
LOIs resemble written contracts, but ARE USUALLY NOT BINDING UPON THE PARTIES IN THEIR ENTIRETY. Many LOIs, however, contain provisions that are binding, such as non-disclosure agreements or covenants to negotiate in good faith. An LOI may also be interpreted as binding the parties if it too closely resembles a formal contract.
Do you see the potential for fun and possible aggravation these pose? I can issue my husband letters of intent to kick his ass, and I could make good on those letters at ANY time. Or NEVER. I could also promise my friend Ray Chase $100,000 in a nicely worded letter of intent, but it's not binding as long as I don't word it too carefully! Ray doesn't get shit, and I've broken no law.
Wait, isn't that what a regular old letter does? I can say whatever I want when I write a letter, but I don't have to follow thru on any of my promises mentioned, nor do I have to really mean anything I say. When does it become a letter of my INTENT?---just by typing "This is indeed a Letter of Intent" at the top? And even after I've labelled it as such, I have agreed to NOTHING officially. Legal and binding only in fairy-tale land.
This must be the embarrassing bozo of all legal documents, which means I must soon exploit it wherever possible.
That is all.