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This agreement is most often used in transactions involving a purchase. Sometimes two parties will know that they want to do a business deal together, but they aren't ready to sign an actual agreement. For example, they may agree that one party will sell his or her business for a certain price, but they do not yet agree on who will take on certain liabilities of the business. The parties can sign this document to show each other a good faith intention to work out a deal. It can also help parties get on the same page as to what they expect from the purchase.

Assess Your Final Draft At this point, you're ready to send it off, either in the mail, handing it off, or sending it through the Internet tubes. Let's take a last look at the good examples put together, Jean's better draft.

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