LOIs are dangerous documents because, unless drafted by a capable lawyer, they likely create a contract. If someone asks for a LOI with regards to, say, an equ

LOIs are dangerous documents because, unless drafted by a capable lawyer, they likely create a contract. If someone asks for a LOI with regards to, say, an equipment purchase, and suggests that it is a “non-binding document”, I halt the deal because they’re probably either unscrupulous or incompetent. In such circumstances a LOI is essentially a badly written purchase order, and the other party may rely on it, and bill you accordingly, and repudiation is actionable. The document I hope they describe should be more like a Heads Of Agreement, setting out, at most, terms of reference for a deal.