Legal Dictionary of Pakistan

letter of intent

A written statement detailing the preliminary understanding of parties who plan to enter into a contract or some other agreement; a noncommittal writing preliminary to a contract. ( A letter of intent is not meant to be binding and does not hinder the parties from bargaining with a third party. Business people typically mean not to be bound by a letter of intent, and courts ordinarily do not enforce one; but courts occasionally find that a commitment has been made. - Abbr. LOl. -Also termed memorandum of intent. Cf. precontract under CONTRACT.