Breach of contract

Dear Querist,

1. A Letter of Intent (LOI) is not a concluded contract in itself, it is only an agreement to agree in future. It does not create the rights and obligations of a concluded contract. (See Section 29 of the Indian Contract Act, 1872) 

2. However having said that - the seller is still entitled to recover the amount/expenses incurred by him under quasi contract (S.70 of the Indian Contract Act, 1872) on the basis of principle of quantum meriut - i.e he gets as much as his merit speaks. The law seeks to put him in a position as if he had not entered into the LOI. 

3. As regards Jurisdiction the place of entering into contract/place of performance would have the jurisdiction. 

4. Court fees is normally somewhere around 1/1.5 % of the amount to be recovered. 

Good Luck !

Advocate Bharat Chugh

*Supreme Court of India

*Delhi High Court/Distt. Courts of Delhi. 

dear bharat sir,

THanks a ton for replying this query.just would like to add that

In LOI it was written that kindly send the acknowledgement and consider it as formal NOTICE TO PROCEED .Formal p.o will be issued.so we gave  a acknowledgement and we have chain of e mails in that they are telling us to proceed  for the LOI  urgently .

Still the LOI will not be considered as contract ?

pls suggest

regards

Joshi