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Home Q&A Forum Can a Letter of Intent be legally binding?

Real Estate

Letter of Intent

New York

Asked on Jul 26, 2024

Can a Letter of Intent be legally binding?

I am in the process of negotiating a business deal with another party and we have exchanged Letters of Intent as a preliminary agreement. However, I am unsure if this document holds any legal weight and if it can be enforced in case of a breach. I want to understand the legal implications of a Letter of Intent and whether it can be considered a legally binding contract.

1 Attorney answer

Answer

Real Estate

New York

Answered 37 days ago

Arthur S.

ContractsCounsel verified

Business Lawyer
Licensed in New York
Free Consultation

Short answer is yes...provided they contain the basic elements of a binding agreement. LOI's can be short and simple or extensive and detailed. Most often, LOIs are intended to provide a road map for the drafting of more formal, comprehensive binding agreements and contain an express a provision that they are not intended to be binding upon the parties to the LOI.

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