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Moral of the story? If you're ever contemplating using a Letter of Intent in a business transaction, you had better watched out, it may not be as simple a matter as you might think. You better be very cautious, for it could result in unforeseen and unpredictable consequences!

This position expressed by one representative of a seller, a Swedish_based broker, in a recent exchange with this writer's office regarding the seller's offer wherein the prospective buyer's mandate resisted the broker's insistence that the prospective buyer must first sign an LOI, pretty much sums up the traditional rationale offered by sellers and/or their agents for having an LOI:

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