The Typical Research On Normative Effect Of Letter Of Intent

Due to the extensive use of subscription,order,reservation,letter of intent,memorandum and other documents in domestic practice,the letter of intent has become a legal phenomenon.A letter of intent is not strictly a legal concept.In this paper,the conception of letter of intent is understood in a broad sense,that is,the text named letter of intent or similar names in practice.The legal issues of the letter of intent are mainly studied from three levels: the first level establishes that the basic unit of analyzing the legal character and legal effect of the letter of intent is each clause rather than the whole letter of intent,which distinguishes procedural clauses from substantive clauses.Procedural clauses are rules about the relationship between rights and obligations of the contracting process or the contracting process.The parties usually expressed the intention to be constrained.Normally procedural clauses should have its legal binding.Only in the exceptional circumstances that the parties' intention is obvious or suppositional contrary procedural clauses have no legal binding.The second level is to research which legal documents may be constituted by the substantive clauses of the letter of intent,and what are the standards for distinguishing substantive clauses of different legal characters,so as to clarify the relevant distinguishing standards.According to the collation of judicial information,there are four types of legal character of the letter of intent: offer,negotiation agreement,appointment contract and contract.From the perspective of the judgment criteria,the key feature of the consultative document that distinguishes it from the legally binding documents such as this contract,appointment and offer is that the contents of the consultative document are uncertain or lack of constraint.The key difference between an offer and an appointment contract or a contract is that a offer is made by only one party and only one party is bound by it.The difference between an appointment contract and a contract lies in that the subject matter of an appointment contract is the obligation to conclude a contract within a certain period of time,but not the subject matter of a contract.A contract means any contract under which the rights and obligations can be directly obtained after the contract comes into force.The third level is to research the legal effect of the substantive provisions of letters of intent with different legal characters.A letter of intent,as an offer,has offer binding force,which means it can be revocable before the arrival and be revocable after the arrival of the commitment.Once an acceptance established a contract.A letter of intent,as a consultative agreement,has the binding force of liability for contracting negligence and contract interpretation.A letter of intent,as an appointment contract,its legal effect is to have the obligation to conclude a contract.The breaching party shall assume the liability for breach of the contract.The scope of damages shall be the total losses reasonably foreseen by the parties when they conclude the contract,including but not limited to the interests of reliance and opportunity.The breaching party of a letter of intent which is as a contract shall bear the liability for breach.