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.
The letter of intent is usually executed by the lessor and the lessee, but may instead be executed by their respective brokers. It is generally a precursor to the drafting of the lease. The purpose of the lease letter of intent is of course to set forth the parties' understanding of the terms to be incorporated into the lease.