Letters of intent - A means to an end but sometimes not the one intended

摘要

There is no universally accepted template for a Letter of Intent. Despite this the use of Letters of Intent is common place within the construction industry as a way of where site preparation or deconstruction works commence before the negotiations and the detailed construction contract have been completed. The transition from Letter of Intent to formal contract will often continue for much of the progress of the works themselves and may not always result in the execution of a formal contract. If no formal contract is entered into then a dispute may arise as to what was in fact agreed between the parties, whether that amounts to a formal contract or whether the circumstances indicate that the Letter of Intent remained in force.