Q: Is there a difference between a Letter of Intent and a Purchase Agreement?
Can a Letter of Intent be used as a Purchase Agreement?
A:
A letter of intent is customarily a non-binding instrument outlining the major terms of a contemplated transaction.
A purchase agreement is customarily a binding contract containing a complete and detailed agreement as to all aspects of a transaction.
It would be difficult to "use" a letter of intent "as" a purchase agreement. A letter of intent is customarily a starting point from which the parties develop a more comprehensive and detailed purchase agreement.
I won't say it's impossible, but I've never seen it attempted. If the transaction were simple enough, there would be no reason for a letter of intent at all and the parties would simply prepare a purchase agreement. That happens frequently.
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