Value of Letter of Intent:
N.K.Assumi
(Querist) 29 August 2008
This query is : Resolved
What is the value of letter of intent and what are its nature.
Manish Singh
(Expert) 29 August 2008
Dear Sir,
Letter of intent and memorandum of understanding are considered as a same thing.
their validity and enforceability depends upon several factors.
Fisrstly since it is not a concluded contract it can not be called a contract. so it affects it a lot. specific performance of the same can not be enforced.
Secondly, if some transaction has been done under the LoI then it will be dependant upon those transactions and may be enforced according to the same.
If no consideration has taken place under the LoI, IT can not be enforced.
Still in several cases, damages has been allowed towards the affected party in case of breach of LoI where the other party has done some further act under the LoI.
N.K.Assumi
(Querist) 30 August 2008
Thank you Manish, excellent keep it up.
