What is a written statement expressing the intention to enter into a formal agreement called?

A written statement expressing the intention to enter into a formal agreement is commonly referred to as a Letter of Intent. This document outlines the preliminary understanding between parties who intend to move forward with a contract, detailing their agreement on key elements before finalizing the formal contract.

The purpose of a Letter of Intent is to clarify the intentions of each party, set the groundwork for negotiating a future agreement, and indicate that they are committed to a collaborative process. It serves as a valuable tool to ensure that all parties are aligned regarding the overall terms before investing significant time and resources into the development of a formal contract.

In the context of other choices, a Letter of Agreement is typically a more formal document that may signify a binding contract or specific terms already agreed upon, whereas a Memorandum of Understanding suggests a mutual agreement on certain points but may not specifically indicate an intent to formalize an agreement. Intent to Contract, though it captures the idea of pursuing a contract, is not the standard terminology used to refer to the initial expression of intent that a Letter of Intent embodies.