Diamond Build Ltd v Clapham Park Homes Ltd [2008] EWHC 1439 (TCC) (25 June 2008)

Diamond Build Ltd v Clapham Park Homes Ltd [2008] EWHC 1439 (TCC) (25 June 2008)

The Letter of Intent created a simple contract governing the parties' relationship until execution of a formal contract. No formal contract was executed, so the Letter of Intent and its cap applied. The parties' conduct and documentation did not amount to estoppel or to the formation of a contract on the JCT Intermediate Form. The claim is dismissed.

Citation
[2008] EWHC 1439 (TCC)
Parties
Claimant: Diamond Build Limited; Defendant: Clapham Park Homes Limited
Jurisdiction
England and Wales
Judgment Date
25 June 2008
Procedural Posture
Commercial Construction Dispute / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Letters of Intent, Formation of Contract, Estoppel, Construction Contracts, Quantum Meruit
Contract Law Construction Law Letters of Intent Formation of Contract Estoppel Construction Contracts Quantum Meruit

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Parties

Diamond Build Limited

Claimant

Clapham Park Homes Limited

Defendant

Procedural Posture

Commercial Construction Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether the Letter of Intent was superseded by a formal contract incorporating the JCT Intermediate Form of Building Contract, 2005 edition
  2. 2 Whether an estoppel arose preventing reliance on the Letter of Intent
  3. 3 Whether the claimant is entitled to payment beyond the cap in the Letter of Intent

Ratio Decidendi

The Letter of Intent created a simple contract governing the parties' relationship until execution of a formal contract. No formal contract was executed, so the Letter of Intent and its cap applied. The parties' conduct and documentation did not amount to estoppel or to the formation of a contract on the JCT Intermediate Form. The claim is dismissed.

Court Disposition

Claim dismissed