Letters of Intent AND Requests for BIDS

Question 1

R. 2d § 26. Preliminary Negotiations

Answer 1

i. If the offeree knows/has reason to know that the offeror doesn’t intend to conclude a contract until further manifestation, then the manifestation of willingness is not an offer.

-A letter of intent not a contract if offeree knows/has reason to know that the the offeror doesn’t intend to conclude contract until further written contract.

Question 2

R. 2d § 27. Existence of a Contract Where Written Memorial is Contemplated.

Answer 2

Unless the circumstances demonstrate that the agreements are merely preliminary negotiations, a manifestation of assent is sufficient to conclude that a contract is enforceable if the parties also manifest an intent to prepare and adopt a written memorial of the agreement.

Question 3

STORE PROPERTIES V NEAL CASE LAW

Answer 3

RULE: A contract is not enforceable if it is clear that a party
intends a contract to be binding only after the execution
of a further manifestation of intent.

Question 4

DIESEL V ADDCO CASE LAW

Answer 4

RULE: If a letter of intent lacks sufficient certainty of terms,
and appears indefinite, it is unenforceable.

Question 5

Requests for Bids.- General Rules

Answer 5

In most cases, when a general contractor seeks bids from subcontractors, the general contract’s request for bids is an invitation for offers. The subcontractor’s bids are considered offers.

-Where a general contractor uses a particular subcontractor’s bid to formulate his own, an implied option contract is created via promissory estoppel.
1. This prevents the subcontractor from revoking his bid, although the subcontractor hasn’t promised to keep the bid and the general contractor hasn’t provided any consideration to keep the bid open