Contract Practice Flashcards
1
Q
What are some of the problems that can arise through LOIs?
A
LOIs can vary wildly from a simple expression of hope that a contract will be entered into to contracts in all but name.
The biggest problem with a letter of intent is that it is unlikely to provide the full advantages of a detailed contract being in place.
Those advantages include certainty as to terms, the ability to assess and manage risk, and a methodology for handling the problems that may arise during construction.
