FAQs for Step 74: Include Letters of Intent
Q: How binding is a letter of intent – can I hold the client to purchasing my services with it?
Q: How binding is a letter of intent – can I hold the client to purchasing my services with it?
A letter of intent should not be binding at all. It states the writer’s intention to purchase goods, the amount of which may not even be defined. Whether or not you attempt to “hold” a client to purchase will really depend on how well you know the client and what verbal agreement was originally behind the letter of intent. It would also depend on how strongly the LOI was worded. On the other hand, you do want LOI’s from clients who actually intend to purchase your goods one you’ve started your business. If the letter of intent is not genuine, there’s not a lot of reason to go to the trouble of getting it in the first place. So, if you come to the point of trying to bully clients into honouring an ill-fated letter of intent, you probably don’t have much of a legal case but more importantly, if you’re considering playing the legal card, you have to ask yourself if you really want that particular client!
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