The Letter of Intent is a non_binding document of inquiry, stating one's interest and intent. The more appropriate document for an Importer to use when initiating contact with an Exporter or supplier is an RFQ _ Request for Quotation. Many brokers and new traders believe that the LOI establishes some sort of firm inquiry, nothing can be further from the truth. There is absolutely nothing binding whatsoever about an Letter of Intent because all that it does is to establishes an intention _ for example, I can sit down and write a letter of intent to buy the empire state building and it would be, utterly non binding.
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!