03 Letters of Intent Flashcards
What are letters of intent?
???
Is a letter of intent an appropriate substitute for a contract?
???
What are the dangers of using a letter of intent to start a project?
???
What is the meaning of the term ‘quantum meruit’ in relation to letters of intent?
???
Your client has asked you to issue a letter of intent on his behalf. What would you do?
???
Would you draft a letter of intent on behalf of your client?
???
Who should draft a letter of intent?
???
What types of letters of intent are there?
- Comfort Letters
- Instructions to Proceed with Consent to Spend
- Letters Recognising the Existence of Binding Contracts
When might your client use a comfort letter?
???
When might your client use a permission to expend monies letter?
???
When might your client use a letter recognising the existence of a binding contract?
???
Once your client has issued a letter of intent, does the contractor have to do anything if it is to be binding on the parties?
???
What information might you have to provide for your client?s solicitor for inclusion in a letter of intent?
???
What caps or limits are usually included in letters of intent?
???
What happens when the limit of a letter of intent has been reached in terms of money or time?
???
Can a contractor apply for more money under a letter of intent?
???
If you were asked to review a letter of intent for a client, how would you respond and why?
???
Explain how a letter of intent has been used at the start of one of your projects.
???
Your client says he wants to use a letter of intent to form a binding contract on his project. What advice would you give him?
???
Your client wants to know how much information about the project he can put in a comfort letter without making it binding. What advice would you give him?
???
Your client wishes to commence its construction project on site immediately and considers that preparing a letter of intent is the only way that it could achieve this. What advice would you give him?
???
A contract has been started with a full letter of intent. Is this a contract under the Construction Act?
???
