Generally, LOIs are considered non-binding agreements, meaning they do not legally obligate either party to complete the transaction. However, certain provisions within the LOI, such as exclusivity clauses or confidentiality agreements, may have binding effects. It's essential to carefully review the language and seek legal advice if needed to understand your rights and obligations. Additionally, if you wish to back out of the transaction after signing the LOI, it's typically advisable to communicate your intentions with the other party promptly and in writing to mitigate potential misunderstandings and facilitate the resolution of any disputes that may arise.