Which of the following BEST describes a letter of intent (LOI)?

1. An agreement where one or more parties holds the remaining parties harmless against any future liability.

2. An agreement between two or more parties with a duration of less than one year.

3. A permanent agreement between two or more parties whose provisions are all binding.

4. An agreement that comprises a basic understanding between two or more parties as they explore future business dealings.

5. A temporary agreement between two or more parties while the actual agreement is finalized.