Recognition of existence of a binding contract
Letters recognising the existence of a binding contract between the parties may be used to execute the contract before the formalities of copying, binding and signing the contract have been completed.
A letter recognising the existence of a binding contract has similar effects to the execution of the contract itself. If the contract is repudiated after such a letter is in place, but before the contract itself has been signed, the employer will be liable for loss of profit by the contractor on the outstanding works.
This is a sample form of letter recognising the existence of a binding contract.