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.
ANY agreement between two people which commits the parties to something is legally binding. Signatures and what not don't make the agreement more binding, they just make it a lot easier to prove in a court of law that there was indeed an agreement. Therefore, in court a watertight document will be virtually impossible for either party to deny that they agreed to the terms of the document.