Intangible assets have been argued to be one possible contributor to the disparity between company value as per their accounting records, and company value as per their market capitalization. 1  Considering this argument, it is important to understand what an intangible asset truly is in the eyes of an accountant.
The challenge is that a letter of intent can be, at the same time, both binding and nonbinding. And when drafted to resemble an official contract, even letters of intent that specifically say they are not binding might be held by a court to be binding in whole or in part for a variety of reasons.
It can be quite formal and detailed or remarkably simple. Essentially a letter of intent is directed from the prospective purchaser to the seller stating the buyerâs intention to buy the inn. The very basic terms of the offer delineated in the letter should include the price, proposed closing date, and basic financing conditions.