Good intentions
13 September 2012
Letters of intent allow suppliers to carry out preliminary work before a contract is agreed upon but they can spell trouble for the purchaser. Peter Marsh and Frank Griffiths explain
A letter of intent expresses the intention to place a contract with a particular supplier. It imposes no contractual obligation on either the purchaser or supplier. The purchaser will only usually issue a letter of intent with the object of getting the supplier to undertake preliminary work on the contract. Problems can arise in the use of letters of intent as the...