Question

does credit transaction create a binding or legal obligation to a business​

Answer 1

Answer:

no. it does cause any I'll effect

Answer 2

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A party that has signed a letter of intent (LOI) may be legally bound to honor it depending on how the letter is drafted. In a business-to-business transaction, a letter of intent normally contains a provision stating that the letter is non-binding. Even if such language is not included, it is possible a court would rule that the letter is only an expression of intent. On the other hand, the parties to a letter of intent should not rely on assumptions: strong non-binding language is recommended.

KEYS TAKEAWAY:-

A letter of intent (LOI) may be legally binding, depending on how it is worded, and in some cases, whether a court has determined it is legally binding.

To determine whether the letter is legally binding, courts will consider the written expression of intent in the letter, and what actions the parties mentioned in the letter take after the letter has been signed.

If the two parties have a history of non-binding letters of intent, for example, the court would be more likely to dismiss the letter's validity as a legitimate contract.