Legal Question in Business Law in Colorado
Letter of Intent
Is there any Legal implication to a Letter of Intent. Does the issuer of a letter of intent have legal obligation?
If not, what is it's purpose and if so how does it differ from a purchase order?
2 Answers from Attorneys
Re: Letter of Intent
A letter of intent can be interpreted as a contract unless there was language in the letter expressly stating otherwise.
If you acted in reliance on a letter of intent, you may have recourse under contract or quasi-contract law.
Is a letter of intent binding
Louise Aron
Attorney at Law
Lakewood Office:
1536 South Ingalls
Lakewood, Colorado 80232 USA
(303) 922 7687
fax (303) 922-1370
Cherry Creek Office:
300 South Jackson #100
Denver, Colorado 80209 USA
(303) 780-7339
Satellite offices:
Boulder - 4450 Arapahoe Avenue, #100
DTC - 4610 South Ulster, #150
A TOLL FREE NUMBER is available to clients outside the Denver metro area.
web site http://effectnet.com/la/
Dear LawGuru User:
I would have to do further research on this and get more information from you to give a definite answer.
However, depending upon what a letter of intent states, it often does not create a binding contract. Between writing of the letter and the formation of a formal contract, circumstances may change and facts may come to light which make the contract undesirable. In those cases, I write another letter setting forth the new facts or circumstances and restating what the revised intentions are.
Depending upon the circumstances and the terms which may appear on a purchase order, particularly for specially ordered or manufactured goods, a P.O. creates an enforceable contract.
Thank you for contacting LawGuru.
Sincerely,
Louise Aron
web site: http://effectnet.com/la/
Related Questions & Answers
-
Non-Profit Corp. Budget Access What access to budgets (expenses, income, proposals)... Asked 12/14/01, 9:19 pm in United States Colorado Business Law
-
Company refuses to pay self-contractor for services I did insurance exams for a... Asked 11/15/01, 8:08 pm in United States Colorado Business Law
-
Corporation involved in real estate I am Colorado C-Corp since 1985. I sell computer... Asked 11/15/01, 1:39 pm in United States Colorado Business Law
-
Definition of Incorporator Recently our attorney filed the standard Sec. of State... Asked 10/17/01, 6:17 pm in United States Colorado Business Law