Letter of Intent?
Discussion
Hi Guys,
Today I signed a letter of intent for the 997 Turbo. My question is this: they got me to sign an order form for it and just wrote letter of intent on the top of it. Does this seem normal practise to you? they didnt take any money for it so I dont see what they can do if I decide not to proceed further when it comes to handing cash over?
cheers
TG
Today I signed a letter of intent for the 997 Turbo. My question is this: they got me to sign an order form for it and just wrote letter of intent on the top of it. Does this seem normal practise to you? they didnt take any money for it so I dont see what they can do if I decide not to proceed further when it comes to handing cash over?
cheers
TG
I ordered mine in June last year and I am way down the list (not expecting one in the first year of production).
Signing an order form / piece of paper generally commits you nothing until you spec the car - I have signed plenty in my time... and not taken the cars for all those that I have signed.
Signing an order form / piece of paper generally commits you nothing until you spec the car - I have signed plenty in my time... and not taken the cars for all those that I have signed.
I'm lawyer, but do deal with letters of intent.
The recipient of a letter of intent (dealer) can claim all reasonable costs incurred, in the event that a contract (of sale, in this case) does not come into being.
The issuer of a letter of intent cannot claim damages for late delivery, unless a contract allowing such damages is in existance.
If you pulled out and the dealer sat on the car for ages, eventually selling at less than you 'intended' to buy it for, he could persue you for his loss and for his costs in advertising, storage, insurance etc.
You haven't paid any money, as you have given the dealer something of value.
Paying a deposit creates a contract. This limits your losses to what is allowed under the sale of goods act and in most cases your maximum cost of withdrawing would be the forfeit of some or all of your deposit, depnding on the circumstances.
The recipient of a letter of intent (dealer) can claim all reasonable costs incurred, in the event that a contract (of sale, in this case) does not come into being.
The issuer of a letter of intent cannot claim damages for late delivery, unless a contract allowing such damages is in existance.
If you pulled out and the dealer sat on the car for ages, eventually selling at less than you 'intended' to buy it for, he could persue you for his loss and for his costs in advertising, storage, insurance etc.
You haven't paid any money, as you have given the dealer something of value.
Paying a deposit creates a contract. This limits your losses to what is allowed under the sale of goods act and in most cases your maximum cost of withdrawing would be the forfeit of some or all of your deposit, depnding on the circumstances.
I am not a lawyer but do have a masters in Contract Law. I am rusty as hell from 10 years in IT but from memory - Legality, technical enforceability, and likelihood of recovery are all very different things. No consideration (payment) on your part = no contract, period. However you can (as indeed anyone can) open yourself to pursuit for other types of loss as a consequence of commitments or behaviour. What that commitment is worth and if they would pursue you is as usual a balance of your commitment, any frustrating circumstances and actual loss vs. their chance of gain.
With a 997 Turbo build slot of no precise fixed point in time (time is another critical element of a contract) and only a commitment to purchase it with dependencies of what the final car may look like (which is yet to be defined) I think the letter of intent you mention is pretty much worthless. But if it appeases Porsche GB or their customers so be it. So in other words I find it neither technically enforceable nor likely to allow for recovery.
It may also be dependant upon all the reasonable ebb and flow of private financial circumstances – not sure on that.
Like I say I am no Lawyer and this is not advice. My personal opinion could easily be wrong or eclipsed by changes in the Law so I’m hope someone will come in with more since it is an interesting question (well to me it is :-) !
>> Edited by cyrus1971 on Tuesday 25th October 15:47
With a 997 Turbo build slot of no precise fixed point in time (time is another critical element of a contract) and only a commitment to purchase it with dependencies of what the final car may look like (which is yet to be defined) I think the letter of intent you mention is pretty much worthless. But if it appeases Porsche GB or their customers so be it. So in other words I find it neither technically enforceable nor likely to allow for recovery.
It may also be dependant upon all the reasonable ebb and flow of private financial circumstances – not sure on that.
Like I say I am no Lawyer and this is not advice. My personal opinion could easily be wrong or eclipsed by changes in the Law so I’m hope someone will come in with more since it is an interesting question (well to me it is :-) !
>> Edited by cyrus1971 on Tuesday 25th October 15:47
With my 997 the dealer was prepared to give me my deposit(3k) back plus reasonable interest up until the point of specification.
I've got a letter of intent on a turbo aswell, but it means nothing, you can get out of it whenever you want. They've got so many customers who would love to jump the queue on all their cars that it makes very little difference to them.
I've got a letter of intent on a turbo aswell, but it means nothing, you can get out of it whenever you want. They've got so many customers who would love to jump the queue on all their cars that it makes very little difference to them.
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