"Letters of intent are often touted as a 'non_legally binding' way to get the parties to set forth in writing what the undertaking is among them relative to a transaction. Too often, parties will sign such a document, feeling that they have little or nothing to lose by doing so... [True, that's] one of the attractive elements of the letter of intent [its purported non_binding nature]. However, courts have found letters of intent to create binding obligations, even if the letter itself does not explicitly state that it is binding... certain provisions within the document may indeed [still] have legal effect."
LOI is used as manipulation tool at the hands of unscrupulous sellers & agents. Often times, obscure or scam_oriented persons who claim to be crude Sellers, or represent themselves as sellers' agents, mandates or brokers largely by an Internet contact or communication, employ the LOI merely as a tool to quickly "corner and box in" a prospective buyer to a purchase deal, before the prospective buyer may demand that they provide their business profile or show him something tangible to demonstrate that they are truly legitimate sellers. Such sellers would persistently demand that the prospective buyers hurry and issue them an LOI right upfront purportedly as proof that they are "serious" about making the purchase _ that is, before the buyer may probably start raising some probing questions about them or their credentials as legitimate sellers.