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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.

HOW VALID, OR OTHERWISE, ARE THESE USUAL RATIONALE BY SELLERS OR THEIR AGENTS? Ironically, while oil sellers and their agents frequently demand that prospective "serious" buyers involved in crude oil transactions should first offer an LOI, the buyers, on the other hand, are not generally enamored of that idea. Especially when, in effect, what is being asked of them is to provide the LOI upfront to a little_known Internet_generated seller about whom they lack any familiarity with or whose bona fides as sellers they know next to nothing about _ other than, perhaps, that they (the buyers) had had some initial communication with the "seller" via an Internet contact. In deed, to this writer's knowledge, crude buyers, particularly the more established and prominent ones, would very rarely offer an LOI upfront to any sellers to initiate a purchase. And when, especially, the supposed "seller" that's involved is one that is a virtual unknown to the buyer, or one that is merely an Internet_generated seller about whose bona fides and credentials the buyer knows practically next to nothing, one can be almost absolutely certain that the chances of a crude buyer of substance signing over an LOI to such a seller, is practically next to zero.

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