Whether working independently or as part of a larger organization, anyone can use an LOI. For individuals, a letter of intent is comparable to a personal pitch that states their intent to accept an opportunity — it doesn’t set specific terms of a potential transaction or count as due diligence. For students or job seekers, for example, it can simply be a way to show professional courtesy and stand out from a crowded field of potential applicants.
On the other hand, businesses need due diligence before they engage in a transaction. That means taking reasonable steps to satisfy specific legal requirements by laying them out in detail in the letter’s contents. Those specifics can include being transparent about the purpose of the intent, the size of the transaction, the potential cost, and when the business hopes it will occur — although it can cover even more than that.