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A letter of intent is a document that outlines the terms of a future agreement, created before parties enter into a formal contract. It typically specifies a deadline for executing the contract and can be either legally binding or non-binding. Non-binding letters signify a good faith commitment to create a formal agreement in the future but are not legally enforceable. This document can be useful in various contexts, including real estate transactions, business dealings, lawsuits, and immigration processes. For more information and examples, viewers are encouraged to check the video description.