DealLawyers.com Blog

February 18, 2010

Delaware Chancery: Letter of Intent May Be Binding

Recently, this Milbank Tweed alert by Robert Reder discussed the fact that letters of intent, often used in early stages of corporate transactions to memorialize parties’ basic goals and define parameters of negotiations, may represent legally binding obligations. It reviews a recent case example, Global Asset Capital v. Rubicon US Reit, where the Court’s motioned for a temporarily restraining order against the defendant from taking actions potentially in breach of certain provisions of a letter of interest with the plaintiff.