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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.

Here's where the difference comes in between a cover letter and a letter of intent. With a cover letter, you likely already have a solid idea of what the job opportunity is, and how to position yourself for it. With a letter of intent, you have to make a slightly trickier balance—positioning yourself as qualified for a job that may not be clear yet. To do that, align your self talk around the company or the industry, making sure to highlight your skills and achievements that would make you a good fit for the company. You can also be specific about your level and experience. For example, you should make it clear that you're looking for a manager-level position if you don't want to be considered for more junior or entry-level roles.

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