Breaching a contract in Michigan is a serious matter that could cause thousands of dollars in damages. A letter of intent is generally non-binding, but the terms can be written to be binding, so the plaintiff can use this document to sue the defendant for damages. There are several important details to understand about the significance of the letter of intent.
The meaning of letter of intent
A letter of intent is a written agreement that one or more parties is planning to perform a task for another individual or company. This document is generally non-binding and cannot be brought up in court if its terms are violated. It is only an outline of what both parties intend to do before a legally binding contract is made.
Drafting and negotiating legal documents
Negotiation and drafting is a legal process to ensure that agreements are taken seriously and completed in entirety. Negotiating a legal contract protects an individual or business that invests a lot of money in a project or worker. The purpose is to reduce the risks of investing in projects that fail or in which the worker does not take the duties seriously. Another reason is to prevent unnecessary changes from being made to the contract without a person’s consent. Any changes result in delays, adjustments to the budget and increased stress.
Creating a document of trust
The success of a project depends on how well you can draft and negotiate a contract. This often starts with a letter of intent that outlines what each worker is planning to do. It is the preliminary step to making a solid, legally binding contract that can be challenged in court.