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Seek legal advice before drafting letters of intent


Letters of intent are widely used in the building trade, because it is not unusual for both developer and contractor to wish to make progress on a building project without having to wait until the formal contractual arrangements have been fully agreed.

However, letters of intent are fraught with possible pitfalls and have led to a procession of cases coming before the courts.  The best way to ensure their successful use is to take legal advice to ensure the drafting of any documentation is as tight as possible.

Ideally, any letter should:

However, this brings with it its own uncertainties.

Although a letter of intent offers flexibility in the contractual arrangements in the early stages of the project, it is normally desirable for a formal contract to be entered into.

For more information on contractual arrangements contact David Brown, partner and head of the construction team at Gullands, [email protected]

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