Letters of Intent

Is a Letter of Intent enforceable?

Unfortunately, there is no simple answer to whether a Letter of Intent (“LOI”) will be enforceable. It could be: (A) yes; (B) no, not at all; (C) some parts yes, and some parts no; (D) no, but it will be treated as if it were; and (E) no, but it may affect the parties’ later agreement. While most courts understand the non-binding concept of an LOI and its role in a commercial transaction, there are exceptions where a court will treat the terms of the LOI as the “real deal.”