This chapter contains sections titled:

• Mr Justice Clarke, in the case of RTS Flexible Systems Ltd v. Molkerei Alios Muller (2010), said ‘This case is another example of the perils of proceeding with work under a letter of intent’. What did he mean?

• What risk is a contractor taking if it receives a letter of intent which places a cap on expenditure, but carries out work in excess of the cap?

• When work is undertaken in accordance with a letter of intent without a contract being entered into, on what basis is the contractor or subcontractor entitled to be paid for the work carried out?

• Under what circumstances, if any, could a letter of intent be regarded as a concluded contract?

• What are the advantages and disadvantages to an employer and contractor in work being commenced on the basis of a letter of intent?

• Could an architect, engineer or project manager be negligent for recommending to an employer that a letter of intent be used?