RTS Flexible Systems Ltd v Molkerei Alois Müller Gmbh & Company KG [2010] UKSC 14 – Law Journals

Letters Of Intent: Cautious correspondence

Claire King considers the benefits and pitfalls of letters of intent ‘Perhaps the most common argument running through the cases is whether any binding contract has been reached as a result of the letter of intent.’ The use of letters of intent can be fraught with difficulty. In this article I review the key case …

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Construction Focus: Risky business

Letters of intent can lead to uncertainty and costly disputes. John Starr discusses recent cases ‘The judge did not consider that the letter of intent itself imposed a condition that the contemplated replacement contract had to be the subject of formal execution.’Letters of intent are widely used in the construction industry as a means of …

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Practice: Menu à la contract

James Popperwell and Nikolas Ireland examine a recent case looking at contract formation ‘The tentative nature of the words used by MacInnes in referring to and describing the alleged agreement signified that the formulation process was ongoing as opposed to being a concluded agreement.’The High Court’s recent decision in MacInnes v Gross [2017] provides a …

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Construction Focus: Enforceability of agreements

John Starr assesses the enforceability of informal agreements in the context of recent case law ‘Both cases make clear the importance of using the words “subject to contract”. While the use of those words is not always determinative, it is generally regarded as a strong indicator that the parties do not intend to be bound.’Parties …

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Practice: Careless talk

Paul Chaplin examines an unintended agreement ‘Whether a concluded agreement has been reached is to be determined objectively by considering the whole course of the parties’ negotiations, including an objective appraisal of the parties’ words and conduct.’In the recent case of Bieber v Teathers Ltd (in liquidation) [2014], the court considered whether an exchange of …

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Construction Focus: Letters of intent: uncertainty breeds dispute

John Starr reviews a case highlighting the dangers of failing to progress beyond letters of intent when proceeding with a project ‘While it might be fanciful to expect those in the construction industry always to heed Lord Clarke’s advice, they should nevertheless be alive to the dangers.’ It has long been known by the construction …

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