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I have signed what if feel is a non-binding letter with a…

Hello, I have signed...

Hello, I have signed what if feel is a non-binding letter with a contractor company, indicating my acceptance to a number of bullet point items, essentially allowing them to gather 3rd party helicopter contractor bids for our upcoming job. In return, our company agrees to pay them a fee equivalent to 8% of the helicopter charter rate, as concluded in a charter agreement they would bring to me. I decided to fire them after three weeks, as i still had received nothing from them (no bids from heli companies). Do I owe them anything? I can send a copy of the one page signed letter..

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Answered in 3 minutes by:
3/16/2018
socrateaser
socrateaser, Lawyer
Category: Legal
Satisfied Customers: 39,769
Experience: Retired
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Hello,

The letter is effectively an agency agreement under which the company agreed to act as your agent to procure bids. An agency agreement may be terminated "at will" by the principal (you). If you terminated the agreement, and no bids were procured -- and you signed no agreement to provide protection to the agent in the event of the termination of the agreement (legally termed, a "protection period"), then the agency is terminated and you owe nothing.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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Customer reply replied 1 month ago
Thank you so much! Great quick answer! Can you have a review of the attached letter i signed? Also note, that they put the wrong company name, in the section "in return of the above, Noranda agrees to:". We are not Noranda, our company name is*****

The agreement could be interpreted at an agency agreement or a straightforward contract. The problem is that the letter doesn't really provide much detail as to time to performance or anything else, so it could be construed as merely a letter of intent, subject to future contractual negotiations.

Unfortunately, this makes the issue much more complicated. If I were representing the vendor, I would recommend against pursuing the matter in court, because the litigation costs could be very high, and there's no guarantee of success.

Ultimately, however, the intent of the parties controls most contracts, so if your intent was that this is an agency agreement, and the vendor's intent was that this is a straightforward service contract, then there would be no "meeting of the minds" (aka, mutual assent to the terms of the contract), and that means no contract at all.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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Customer reply replied 1 month ago
Thank you that answers my question perfectly. What are your thoughts on the fact that they put the wrong name "Noranda" in the section regarding agreement to fees?

I think that the name issue is irrelevant, because you signed the letter.

I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf. Note: If you cannot find the rating button on your webpage, please just type in your rating in a response to this note, and customer service will apply the rating for you.

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socrateaser
socrateaser, Lawyer
Category: Legal
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Experience: Retired
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