Five legal questions in construction industry - Coursework Example

In a sense contracts represents the base of many commercial activities and therefore represent one of the most important area in business law. In these cases, letters of intent are widely used in binding these contracts. In these letters, the interested parties state their future intentions of entering into the formal contractual agreement. Letters of intent may be described as an agreement between two parties who wish to be in a contract. Different authors have tried to explain the meaning of the letters of intent in many ways.

For instance, Adriaanse (2010, P. 55) sated that letters of intent are usually a response triggered by negotiations which go on for too long and thus impact on the completion date because the start date might be delayed. In the letter, the sender states their future intention to enter into a formal contractual agreement with the receiver to carry out a certain job. In the context of construction projects, LOI marks the respond from the employer to an offer made by the contractor through the tendering process.

It also state the demand to start carrying out of the agreed work based on their intention to get into a contractual relationship. In most instances, the desire of the employer is to get the job done within the speculated date, or duration. It may become vital to commence the work before the pending agreements are set right. Letters of intent makes it possible for the intention to create a legal relationship be considered. A complete contract requires that the parties involved intent to enter a legal binding agreement.

This will mean that the parties must intent to create legal relations and must get to know that their agreements can further be enforced by law. In normal conditions, the intention to create legal relationship between parties is presumed. In so doing, the contract will not necessarily state that one doesn’t understand and intent any of the legal consequences to follow. In other