Letter Of Intent Not A Contract

In the recent case of Whittle Movers v Hollywood Express, the Court of Appeal has held that there was no binding contract where the terms of the contract continued to be negotiated, even though one party was performing the intended services and being paid pursuant to a letter of intent.

Hollywood put out to tender distribution and warehousing services for the UCI and Odeon Cinema chains, together with Blockbuster stores. Whittle was the successful tenderer. There were negotiations, during which Whittle was persuaded to tender for a six year contract. A letter of intent was entered into which set out Hollywood's intention to enter into a contract with Whittle for distribution services. The...