Letter of Intent
Is there any Legal implication to a Letter of Intent. Does the issuer of a letter of intent have legal obligation?
If not, what is it's purpose and if so how does it differ from a purchase order?
2 Answers from Attorneys
Re: Letter of Intent
A letter of intent can be interpreted as a contract unless there was language in the letter expressly stating otherwise.
If you acted in reliance on a letter of intent, you may have recourse under contract or quasi-contract law.
Is a letter of intent binding
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Dear LawGuru User:
I would have to do further research on this and get more information from you to give a definite answer.
However, depending upon what a letter of intent states, it often does not create a binding contract. Between writing of the letter and the formation of a formal contract, circumstances may change and facts may come to light which make the contract undesirable. In those cases, I write another letter setting forth the new facts or circumstances and restating what the revised intentions are.
Depending upon the circumstances and the terms which may appear on a purchase order, particularly for specially ordered or manufactured goods, a P.O. creates an enforceable contract.
Thank you for contacting LawGuru.
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