In what circumstances will a court uphold a letter of intent where the parties intended to proceed further to a formal contract?
Ontario, Canada
The following excerpt is from Wallace v. Allen, 2007 CanLII 8935 (ON SC):
In the 1998 case of Modderman v. Ondaatje Corp., [See Note 26 below] this court cited the line of cases arising out of and quoted extensively from Marathon Realty in finding [at para. 41]: The entire context of the letter of intent has led me to conclude, in accordance with the legal authorities that emerged in similar circumstances, that the parties intended to proceed further to a formal contract.
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