Sep 30, 2021

SC holds that a Letter of Intent is not Binding Contract Unless Such Intention is Evident From its Terms

The Supreme Court in South Eastern Coalfields Ltd. v. S. Kumar’s Associates AKM (JV)[1], held that a Letter of Intent (‘LoI’) merely indicates parties’ intention to enter into a contract in future. Therefore, no binding relationship emerges at the stage of LoI. However, the Supreme Court clarified that an LoI may be considered as a binding contract provided such intention is evident from its terms, which is clear and unambiguous.


[1] 2021 SCC Online SC 486.




These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.