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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.

The LOI as it is now used is a misunderstood application of poorly informed brokers and traders. A more proper application based on established custom and practice in International trade, going back even to the old medieval "Law Merchant" (Lex Mercantilis) is: Buyer requests a quotation _ in modern usage this is an RFQ/Request For Quotation _ NOT an LOI. Seller may then reply with a Quote. Buyer confirms receipt of quoted prices, and requests an Offer.

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