A party signed a letter of intent, which stated that if grant funds were secured services would be provided by another party and spelled out the equipment and labor to be installed. The grant funds were secured and work by the second party provided. Commission was due to the writer of the letter of intent only if the letter is considered to be a contract. Should commissions be paid to this individual?
Mergers / Acquisitions Attorney
Any writing can potentially be considered a contract if the prerequisites of a contract are met. Generally, a contract is formed where there is a meeting of the minds of the two parties and an exchange of promises is identified in the agreement. In order to determine whether a letter of intent raises to the level of an enforceable contract requires a reading and review of the contract and determination as to the applicable law of the agreement that the agreement is enforceable.