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In fact, some experts have called the LOI a document whose use is primarily advocated or promoted only by amateurs and marginal dealers or "joker_broker" types in the crude trade business, especially the overzealous sellers' agents and brokers in a desperate hurry to land some buyers. Mr. Ziad K. Abdelnour, President & CEO of Blackhawk Partners, Inc, a New York_based advisory firm to traders and suppliers of metals, minerals and crude oil commodities, calls the LOI document something that is primarily "used out on the Internet by inexperienced traders," and by "inexperienced 'intermediary seller' who is claiming to be the supplier."

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.

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