Is this letter of intent a binding contract?

A real estate agent wrote a letter of intent for me as follows:

On behalf of, (name) and (name) we are hereby submitting the following letter of intent to purchase the assets at above referenced business premises:
1. Purchase price : $$
2. All equipment, furniture and fixtures to be included within the purchase price.
3. Purchase contingent upon buyer obtaining an acceptable lease from the Landlord
3. No bulk sale to be preformed as Buyer is sloely purchasing equipment from the Seller. Seller to provide equipment free and clear of all liens and encumberances.
5. Seller to pay real estate commission of $5000.

Signed


Reality Office


Approved and Accepted:

(seller's signature) (buyer's signature)

** note: now i have the lease already but found out that the assets are not worth the $35,000 being charged. It is worth about $7,000. Can I not honor this letter of intent, since the lease is already approved and the business is not even open, it has been closed for months

I wouldn't think it'd be binding without any earnest money being put down on it. You say you have the lease, but is it "acceptable"? Just getting the lease doesn't fulfil the terms if you can find something about it that's not acceptable! Also, if it turns out the assets aren't worth a fifth of the sale price, there may be grounds for misrepresentation, and voiding of the letter of intent. You really do need a good lawyer to look this over.

Yes, I would say that a letter of intent is a binding contract because the Real Estate company is purchasing assets.

And since a lease in also involved both the letter of intent and the lease are not valid unless they are both signed.

You may want to consider contacting an attorney to review the letter of intent as well as ask for an explanation if have questions about if you should honor the it since the lease is already approved and the business in not open as of yet.

I strongly believe It is always a good practice to review a document thoroughly before signing it.

Hope this helps.

God Bless.