Beware letters of intent

摘要

Bennett (Electrical) Services Ltd could not have anticipated the costly and unfortunate series of events that followed the signing of a letter of intent. Rudi Klein offers some advice on how to avoid making the same mistakes. Like most firms, Bennett (Electrical) Services Ltd could not have anticipated the costly and unfortunate series of events that followed their signing of a letter of intent on or about 23 April 2004. The letter had been sent by a Mr Wilson, a project manager employed by an M&E contractor, Inviron Ltd. The parties had held discussions exactly a month earlier about a contract for electrical installation works to be carried out in Wimbledon. At that meeting a number of issues were discussed such as working hours, payment mechanisms, variations, insurance and health & safety. The outcome of the discussions was never recorded. This was the start of the problems.