Hensley and boyer have been negotiating for several months over issues related to the purchase and sales of some real estate. They draft the letter or intent which: protects both parties by ensuring the other side is serious and creates a binding agreement on the issues on which the parties have agreed thus far. May or may not be an offer, depending on the exact language, and whether the document indicates that the parties have reached an agreement. Has no legal effect, but provides a record for the parties as to where the negotiation stands. Courts were considered to be a valid offer which the other party must accept if offered and good faith.