Q: How binding is a letter of intent? Nearly eight years ago, I signed a one-paragraph agreement in which I allowed a producer to attach himself to my original screenplay and shop it around. He found no takers and hasn’t submitted the script anywhere for at least five years. Now I’m thinking of reviving the project, but would prefer to do so without the producer’s involvement. Do I have any further legal or moral obligation to him? I would like to add that no money exchanged hands; the producer never actually optioned or bought my screenplay.
A: A true letter of intent is as binging as your To Do list, or at least it should be. You intend to do the things on your To Do list, but if you don’t do them you won’t get sued. The only way a letter of intent is legally binding is if it’s not truly a letter of intent. It’s not what you call something, it’s what it is. You can have a piece of paper called a letter of intent that actually contains a binding agreement or you can have something called a binding agreement that actually contains no agreement at all but just a list of non-binding things the parties intend. It seems like you have something called a letter of intent which actually contains your agreement to attach a producer to your screenplay. Continue reading the full story . . . »