Whether the Construction Act 1996 applied to letters of intent was an issue that troubled practitioners and the courts for a number of years. From the various cases that considered this issue, the answer seemed to be that each case would turn on its own facts (that classic lawyerly phrase!), but the Act would apply if the letter of intent was a “complete agreement”. In other words, if the letter of intent satisfied the requirements of section 107, the parties were “parties to a construction contract“.
So, what happens to letters of intent now that section 107 has been repealed? Continue reading
