Letters of Intent

First given as a seminar on 19^th April 2005

A. Introduction

A letter of intent, usually bearing that title, may be issued by an intending purchaser of goods or services during the course of pre-contract negotiations or immediately after their conclusion. There may be several purposes for doing this. The intending purchaser may wish to ensure that the goods or services he requires are reserved and so remain available until they are finally secured by the intended contract. The purchaser may wish the supplier to place the goods on order to initiate their manufacture where there may be a delay in delivery. The purchaser/client in a construction contract may wish to encourage the contractor to mobilise, pending formalisation of the contract, to minimise delay in commencement of the work.