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Geoff Brewer of Brewer Consulting looks at the retrospective effect of contracts

By: Series: Contract Journal ; 411(6353) 14 November 2001, 25(1)Publication details: 2001Subject(s): Summary: Discusses a common habit in the construction industry when parties will often start work on the strength of a letter of intent. When a binding contract has been drawn up and the conditions legally necessary have been agreed, the contract will apply between the parties to regulate their relationships back to the point when work first began. Looks at case law which involved works that started on the strength of a letter of intent which pre-dated the coming into force of the Construction Act 1996. Concentrates in particular on the case "Yarm Road Ltd v Costain Ltd". The issue in this case was not the retrospective operation of the contract, but the operation of a novation agreement.
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Journal article London Journal article ABS64752 (Browse shelf(Opens below)) 1 Available 115831-1001

Discusses a common habit in the construction industry when parties will often start work on the strength of a letter of intent. When a binding contract has been drawn up and the conditions legally necessary have been agreed, the contract will apply between the parties to regulate their relationships back to the point when work first began. Looks at case law which involved works that started on the strength of a letter of intent which pre-dated the coming into force of the Construction Act 1996. Concentrates in particular on the case "Yarm Road Ltd v Costain Ltd". The issue in this case was not the retrospective operation of the contract, but the operation of a novation agreement.