CAPM (Certified Associate in Project Management) 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 885

What is a letter of intent?

A legally binding commitment

A letter without legal binding that signifies intention to hire

A letter of intent is a non-legally binding document that signifies an intention to hire or do business in the future. It outlines the key terms and conditions of a potential agreement between parties, serving as a starting point for negotiations before a formal contract is created. Option A is incorrect because a letter of intent is not a legally binding commitment. Option C is incorrect because a letter of intent does not typically include the contract price; instead, it focuses on the key terms and objectives of the potential agreement. Option D is incorrect as a letter of intent is not the final contract; it precedes the finalization of a formal agreement and acts as a preliminary document outlining key points.

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A signed document agreeing on the contract price

The final contract sent to the seller

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