4. Letters of Intent

  1. Roger Knowles FRICS, FCIArb, FQSi, Barrister

Published Online: 14 FEB 2012

DOI: 10.1002/9781118257050.ch4

200 Contractual Problems and their Solutions, Third Edition

200 Contractual Problems and their Solutions, Third Edition

How to Cite

Knowles, R. (2012) Letters of Intent, in 200 Contractual Problems and their Solutions, Third Edition, Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781118257050.ch4

Publication History

  1. Published Online: 14 FEB 2012
  2. Published Print: 15 FEB 2012

ISBN Information

Print ISBN: 9780470658314

Online ISBN: 9781118257050

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Keywords:

  • letters of intent;
  • fast-track, methods, formal contract;
  • scale of problem;
  • absence of agreement;
  • contractors, and letter of intent;
  • contractor;
  • letter of intent, for work undertaken;
  • avoiding letters of intent;
  • confusion, over rights of parties

Summary

This chapter contains sections titled:

  • Mr Justice Clarke, in the case of RTS Flexible Systems Ltd v. Molkerei Alios Muller (2010), said ‘This case is another example of the perils of proceeding with work under a letter of intent’. What did he mean?

  • What risk is a contractor taking if it receives a letter of intent which places a cap on expenditure, but carries out work in excess of the cap?

  • When work is undertaken in accordance with a letter of intent without a contract being entered into, on what basis is the contractor or subcontractor entitled to be paid for the work carried out?

  • Under what circumstances, if any, could a letter of intent be regarded as a concluded contract?

  • What are the advantages and disadvantages to an employer and contractor in work being commenced on the basis of a letter of intent?

  • Could an architect, engineer or project manager be negligent for recommending to an employer that a letter of intent be used?