There may also be a вЂloss of faceвЂ™ if negotiations between the parties fail and details of the agreement have been disclosed to other parties. In the past the courts have decided that work which was conducted following a letter of intent should have been paid for even when the contract did not arise. Using the phrase вЂsubject to contractвЂ™ for example, which normally implies that contractual relations will be created later, is not always effective. Unless a letter of intent is carefully drafted, it can create a contract which is enforceable in the courts. Letters of intent can also be submitted to authorities such as the Inland Revenue, to agree that a particular way of structuring a deal will not cause tax problems for example. They can also be used when a third party is brought into the deal to help them in their decision-making. Letters of intent are often used for both parties to reassure the other of their intentions in the deal, and to provide guidance on how the deal will be done. One clause often included in a letter of intent which is legally binding is a confidentiality clause, which states that confidential information acquired during negotiations will not be disclosed to third parties or used in any other way. While the term вЂletter of intentвЂ™ does not have legal significance, care must be taken when drafting these are the courts will often treat them as contracts that can be enforced. When two or more people enter into a contract to do business together, letters of intent or вЂheads of agreementвЂ™ are used to indicate the terms of their contractual relationship.

Nhs letter of intent