Letter of intent is used when an individual enters into a certain transaction or business relationship. People usually go for letters of intent instead of going for a legally binding agreement.
LOI is a Legally Worthless Document That Means Virtually Nothing _ As a practical matter, in legal terms, the Letter of Intent is a worthless and meaningless document. The LOI is a badly flawed legal document. This is because the document is, as one experienced contract law expert put it, "an agreement to agree which is non_binding and non_enforceable as a contract."