In Feldman v. Allegheny International, Inc., 850 F.2d 1217, 1219 (7th Cir. 1988), the parties entered into lengthy negotiations regarding the purchase of a group of food-related companies. The parties then signed a letter of intent, which provided that the parties "understood that this is not a binding agreement and the obligations and rights of the parties shall be set forth in the definitive agreement executed by the parties. " Id. at 1221. The court, applying Illinois law, stated that "having agreed to enter into exclusive negotiations, each party agreed that no step of the negotiations should be interpreted by the other as a binding contract until a definitive agreement had been reached and formally executed." Id. The clause stating that the agreement was not binding "eliminates confusion about when a binding contract arises." Id. Because there was no fact question presented and the contract was not binding as a matter of law, the court affirmed a directed verdict for the defendant. Id. at 1226.