... entirely void or voidable17-1 Chapter 17Contract Formation and Legal Issues17-20Legality of Purpose•A contract whose purpose is illegal is automatically illegal and void•A contract whose ... should appear above the agent’s signature17-22Letters of Intent•Letters of Intent and Memorandums of Understanding – precontracts to cover informal agreements.•LOI’s can be used as a planning ... obligation”•Statements regarding material quantity, price, delivery, and so on must be specific enough to bind both the buyer’s firm and the supplier to definable levels of performance17-19Competent...