The main aspect that needs to be understood is that an LOI is not a contract; at best it is an offer that needs to be confirmed or negated by the other party. However, a particular contractor by dint of some merit has been chosen over others. “ It applies also where the sub-contractor has been chosen for his specialist trade. – “British Waggon Co.-v-Lea (1880)” 2
(Footnote: In this case it was held that delegation of contractual duties is possible except when individual’s skill, competencies and other resources are not considered while effecting the delegation.)
This was again confirmed in the case of “Southway Group Ltd-v-Wolff and Wolff (1991)” 3 (footnote: Novation is another means by which contractual obligations can be "transferred" from one person to another)
That being said, it is also necessary to state that in construction business, the main documents are the floatation of tender. As per accepted protocol, the contractor or owner floats tenders which are quoted by different parties, these tenders are examined and the final bid is finalized.
“The form and content of LOIs are as varied as the circumstances in which they may be issued.No doubt it is this variety that led Robert Goff J in British Steel Corp v Cleveland Bridge and Engineering Co Ltd (1984) to observe that there is "no hard and fast answer to the question whether a letter of intent will give rise to a binding agreement: everything must depend on the circumstances of the particular case." 4
Sometimes there is an oral promise by one party to do something and for another to remunerate him on his doing it. “ The latter transaction is really no more than a standing offer which, if acted upon before it lapses or is lawfully withdrawn, will result in a binding contract.” 5
However, in this case, although the parties wished and hoped for the contract to be finalized, it did
1) In simple terms, an LOI could be said to be a written statement manifesting the desire of its signatories to enter into a structured accord, especially with regard to the business dealings and its execution. Sometimes, there may be no formal basis for contract. “A formal…
Inferior materials used on the exterior of the building 2. Wrong materials used in the reception area floor 3. Defective doors discovered by Innocent's architects and 4. Dampness in the ceiling discovered during the rectification period This section will examine these issues in three main parts.
But the circumstances like this may arise and the legal system recognizes and guarantees remedies. The only thing is that situations like this may cause problems in the functioning of the University.
If the contractor appointed by the University, fails to act as per the requisites or requirements of the University, the University will have to first intimate him as to the deviations against the agreement.
According to Yates and Epstein, delays in construction projects for example, may be initiated right at the commencement stage itself due to poor management within the supply chain.1 The question of creation of risk arises from the supply side, since it is
The author states that Clark initiated a successful coach operating business from a depot in south east London. However, later it was operating about 20 coaches from that depot. But by the end of the decade the fleet had doubled and it was becoming difficult to manage properly the maintenance, servicing and cleaning of these coaches.
The definitions of terms that commonly arise in construction contract is provided in the Appendix.
In the case of complex construction agreements, it may be noted that there are several parties involved in the contract. i.e, the main
The author states that Health & Safety issues of a construction project are dealt by “the Construction Design and Management Regulations, 1994”. Under this law, an architect can be held accountable if he has failed to forewarn the client about his accountabilities. This law imposes more responsibilities on architects.
ASyS believe that adapting and upholding approach such as making procurement process simple, transparent and in the manner that it safeguards the embezzlement of taxpayers’ moneys are best strategies to