Good intentions

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...

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