CONTRACTS

摘要

Many cases on contract formation (when a legally binding agreement comes into existence) in the law reports relate to construction projects. It is a bad habit of certain contractors to start the work following an 'agreement in principle' or a 'letter of intent', without having drawn up the full contract. Earlier this year, the Supreme Court considered such a case and reversed the Court of Appeal's decision: in 'contract formation' cases, much will depend on how the circumstances strike a particular judge. The case concerned works for Miiller, a well-known producer of milk products.The contractor had tendered for installation of machinery at a Miiller factory.