LawDepot's Letter of Intent is not a legally binding document. Instead, it provides a structure for parties to negotiate freely and without the fear of being bound to any terms. However, commercial negotiations often require confidential disclosures from one party so that the other party can decide whether to go ahead with the transaction. For example, if you are buying a business, you may need to see financial statements which the seller will need to be kept confidential. Sometimes, a Letter of Intent includes a section on confidential obligations, which is intended to be legally binding. LawDepot recommends using a separate ProductLink code="CONFID" text="Confidentiality Agreement" for this purpose.