Real Estate
Letter of Intent
New York
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
Arthur S.
ContractsCounsel verified
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.