TURIFF CONSTRUCTION LTD V REGALIA KNITTING MILLS LTD (1972) DIGEST OF CASES 257
Official Referees Court (United Kingdom) – 22 November 1971
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.
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?