whether such a letter constitutes a binding contract in law or whetherit is a mere incholate transaction?
Adv.Shine Thomas (Advocate) 24 September 2008
A Letter of Intent is a document outlining an agreement between two or more parties before the agreement is finilised.A LOI may also be referred to as a MOU or 'term sheet'.These all documents are substantively the same.
The purpose of a LOI may be:
Binding Nature of LOI
For this the Court has examined five factors in Texaco,Inc v Pennzoil Co.
Whether a LoI will give rise to a binding contract depends on the circumstances of each case.
The use of LoI in contracting is ingrained within the construction industry and can often provide a fast solution to finalise contractul arrangements and ensuring the timely commencement of a project.
To ensure that a letter of intent is contractually binding,it should:
P.Elamaran (Law Officer in a CPSU) 25 September 2008
Dear Prof. S.C.Pratihar,
In the field of commercial contracts, after opening of the bids, the successful bidder will be issued a letter of intent (LoI) and then a letter of award (LoA) asking him to commence the works with regard to an awarded contract. These LoI , LoA and General Conditions and Special Conditions if any , are certainly part and parcel of a contract.
Law Aspire (Legal) 28 August 2018
Letter of Intent is the Letter of award itself, there cannot be two documents for intimation .