In construction and engineering, a temporary binding or non-binding arrangement entered into while the parties conclude formal building contract negotiations. Letters of intent may be used when the parties need to start to procure materials, commence site preparations or start the works before agreement of all the formal contract terms (or the formal contract price). See Practice note, Letters of intent (www.practicallaw.com/5-382-8108).
In commercial and corporate transactions, see Heads of terms (www.practicallaw.com/A36240).