Letters of intent and formation of contract

Brewer, G

Letters of intent and formation of contract - 2001 - Contract Journal 409(6338) 1 August 2001, 21(1) .

0iscusses the case "Carillion Construction Ltd (trading as Crown House Engineering) v Ballast Plc", CA 12 July 2001 where the parties became involved in a dispute over payments claimed by Crown House. No formal contract was entered into but Ballast wrote a letter of intent to Crown House, stating its 'intention to enter into subcontract' for mechanical and electrical installations, on the basis of the latest revised price. Crown House argued that the letter was an acceptance of its quotation based upon the revised specification. However the Court of Appeal considered that a letter of intent would normally be insufficient to establish contractual agreements.


LETTER OF INTENT
Contracts
SUBCONTRACTS
CONSTRUCTION INDUSTRY
DISPUTES
TENDERS
CROWN HOUSE LTD V BALLAST PLC
CARILLION
TERMS AND CONDITIONS