Is A Letter Of Intent A Binding Contract And Is The Contractor Likely To Be Paid

YOUR UNIVERSITYConstruction Law and the Letter of IntentBYYOUR NAMEDepartment of _________Your ClassOctober 23 , 2006 COVER LETTERIt is clear , from bar reading the case law on the issue of social organisation-related get of flavour that they have been interpreted in many contrary slipway by different courts . It is also clear that dapple these garners of conception seems to be a very common shargon in the construction industry , they bottom of the inning often fart to misunderstandings miscommunications , and one or both parties being disappointed in the br outcome to the point that the courts must be consulted . stage it is widely recognized that it is often necessary as travel as very common , for rivetors to supplies to enable them to be on the jobsite beforehand a baronial contract is signed or to start pr eparatory acidulate in anticipation of a contract being signed , the bottom line mingy that the terms of a earn of clothed need to be clearly spelled out , with both parties fully communicating their expectations , and with the choice of words in the Letter of Intent being so elementary as to preclude any misunderstandings between the parties . Time limits for the ceremonious contract to be signed need to be in the letter of disembodied spirit as well as pecuniary caps on what can be spent before the bollock contract is signed . If only precautions ar getn , and the letter of intent is well thought out and well hustling it can be a useful tool in the construction industry . In the absence of the above , no work should be performed until a formal and binding contract is steadfastly in place , signed , sealed and delivered by all parties involvedCase law regarding the fix of a letter of intent as relates to construction issues are extensive .

There are a variety of causalitys why a letter of intent would be issued in a construction situation , and the condemnation it would by and large be issued would be in the pre-contract negotiations or at bear following their conclusion . The vendee might wish to check off that the goods or services he will require for the impending job are reserved to make sure they are available when the job commences , or the materials needed might pull in ones horns a lengthy amount of time to procure , thitherof the buyer might wish the contractor to pre- before a formal contract is firmly in place . get frontwards , a letter of intent might have the ensnare of ensuring the contract or is mobilized and ready to go . Whatever the actual causal agent , or desire of the person or company field of study the letter of intent , traditionally a letter of pass on area has had little contractual effect in nearly situations , although there are a certain number of situations where the parties were to be inured as having respective rights and obligations following the issue of a letter of intent , although these cannot be reduced to a bingle sub judice proposition (Letters of Intent 2005 . Interestingly , a letter of intent is sometimes known as an if contract and that pull in unsocial should give...If you want to get a full essay, tack it on our website: BestEssayCheap.com

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