TURIFF CONSTRUCTION LTD V REGALIA KNITTING MILLS LTD (1972) DIGEST OF CASES 257
Official Referees Court (United Kingdom) – 22 November 1971
FACTS
Turiff, who had successfully tendered for a building project, was asked to commence preparation work immediately while negotiations were conducted to agree to the terms to be included in a formal contract; Regalia was to purchase the land and obtain the necessary permits in the meantime.
Turiff indicated that Regalia’s sending of a letter of intent would be regarded as an acceptance of an offer to commence such work on terms that it would be paid for even if a formal contract did not eventuate. The proposed contract was to be a design and construct contract.
ISSUES
Should Regalia be found liable to pay for preliminary works carried out by Turiff arising out of abortive negotiations for the construction of the mill?
FINDING
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