letter of intent


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Related to letter of intent: cover letter

letter of intent

Formal written notice given by one party to another of a commitment to pursue an action, e.g., of a plan to bring suit against another party or to take on an assignment on behalf of that party.
References in periodicals archive ?
The general principle is that the expectations or intent of the parties determines whether a letter of intent constitutes a binding contract.
In other cases, courts have looked to contemporaneous oral statements by the parties (such as "we finally have a contract") or the fact that the informal agreement contained all of the essential terms of the transaction to find a letter of intent binding notwithstanding express disclaimers or requirements for a more comprehensive, formal written agreement.
A nonbinding letter of intent will typically include a simple disclaimer such as this: "This letter of intent shall not be binding upon the parties.