GLOSSARY TERM
	Letter of Intent
	DESCRIPTION
	A letter of intent (LOI) expresses an intention to enter into a contract in the future. It normally binds a contractor to start work in respect of a limited scope, up to a maximum fee. LOIs are used widely in the Hong Kong construction industry and take a variety of forms. The effect of an LOI depends upon the objective meaning of the words used in the letter and it will be a question of fact as to whether the LOI gives rise to a binding contract.