sundaymorningstaple wrote:ksl wrote:A letter of intent is not normally binding, unless it has specific details of condition, like the deposit paid will be forfeited or anything to do with administrative costs being deducted in the event the new tenant pulls out before finalising the agreement. Though it needs to be clear in the letter of intent.
http://en.wikipedia.org/wiki/Letter_of_intent
Does anybody know the liability of a letter of intent within the context that the OP is asking. Specifically, are the laws of Singapore identical to those of the US. The Wiki link pertains to US law.
International commercial laws cover it SMS, it's also used in business agreements. its only binding if monies have changed hands a sign of good faith, and because it is not a finalised contract, the supplier is entitled to any form of costs incurred after deposit is paid, with regards to the handling, if the money is not paid, no binding contract is initiated in the letter of intent, and the supplier would not have incurred any costs, if he'd have taken cash, it may have been difficult to get the money back, hence he would lose all or a portion of the deposit.
The difficulty with a letter of intent, is that both parties are involved in arranging it and a payment is made in good faith to cover any foreseen costs, in case the one party drops out, it is not normally binding, but depends largely on the agreed details within the document.
It has nothing to do at all with specific country laws, it is a commercial transaction, and falls under commercial contract laws. The wiki just points out the very basics of a letter of intent, what is actually in the letter of intent is what matters and no doubt it states that on the said day of a memorandum a payment of such and such is paid as a sign of good faith and will be forfeited if the other partner drops out.
Black and white SMS unless it says, the other partner promises to pay the sum of in which case, he would have to hand over the cheque. The money is the key and the terms of how it is agreed to be paid in the letter of intent would seal the letter of intent, make it binding though for
property, slightly different.
Its all in front of your eyes SMS on the expatriat property website, though take your time, you are not young anymore

but you still come out of the woodwork
http://www.singaporeexpats.com/guides-f ... rental.htm
He did the right thing by cancelling the check, it send a direct signal that the letter of intent doesn't exsist and the Landlord can do what he wants. Had they got their hands on the money in Singapore, well what do you think! and even then it is not binding until the housing contract is signed, but do you really believe he would get it back
