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.
"Buyer who is serious, ready and able to purchase [crude oil], will sign [an] LOI and all the necessary documents that protect the rights of the Brokers and proceed. There is nothing to lose in signing those documents. This is how it is usually done and this is how it should be."