Ziad K. Abdelnour, President & CEO Blackhawk Partners, Inc, the New York_based advisory firm on such matters, puts it this way: "Giving a Letter of Intent only means 'Yes I'm intent to buy the goods but I can change my mind anytime.' A letter of Intent is not a binding contract. [Hence] The Letter of Intent is a total waste of time on a worthless piece of paper."
LOI is used as manipulation tool at the hands of unscrupulous sellers & agents. Often times, obscure or scam_oriented persons who claim to be crude Sellers, or represent themselves as sellers' agents, mandates or brokers largely by an Internet contact or communication, employ the LOI merely as a tool to quickly "corner and box in" a prospective buyer to a purchase deal, before the prospective buyer may demand that they provide their business profile or show him something tangible to demonstrate that they are truly legitimate sellers. Such sellers would persistently demand that the prospective buyers hurry and issue them an LOI right upfront purportedly as proof that they are "serious" about making the purchase _ that is, before the buyer may probably start raising some probing questions about them or their credentials as legitimate sellers.