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LOI as a Source or Promoter of Undue Litigation _ Aside from the legal problem of the ambiguity and uncertainty inherent in LOI, there is yet another major problem inherent in the document, from a legal standpoint. Namely, precisely because the LOI is basically ambiguous and non_definitive by nature, the document often easily lends itself to different interpretations and understandings at the hands of different parties (or even the courts), and thus lends itself, in turn, to being a fertile source for undue litigation and legal contests for those involved with the use of that document in their transactions.

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."

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