THE STATUS OF LETTERS OF INTENT

ERDC Group Ltd v Brunel University [2006] EWHC 687 (TCC)

In ERDC Group Ltd v Brunel University [2006] EWHC 687 (TCC) Judge Humphrey LLoyd QC held that, while letters of intent come in all sorts of forms, the letters of intent in the present case did give rise to a contractual relationship between the parties. He held that the parties did intend to create legal relations and that the terms of the letter were sufficiently certain to be enforceable. In relation to work done after the expiry of the last letter of intent, Judge LLoyd concluded that the claimant was entitled to be paid on the same basis. While it would not generally be safe to conclude that work done on a non-contractual basis will be valued in the same way as work done on a contractual basis, on the present facts Judge LLoyd concluded that it was appropriate to assess the value of the work done on the same basis.