THE SELLERS' RATIONALE FOR DEMANDING THE LOI. This position expressed by one representative of a seller, a Swedish_based broker, in a recent exchange with this writer's office regarding the seller's offer wherein the prospective buyer's mandate resisted the broker's insistence that the prospective buyer must first sign an LOI, pretty much sums up the traditional rationale offered by sellers and/or their agents for having an LOI: "Buyer who is serious, ready and able to purchase [crude oil], will sign [an] LOI and all the necessary documents that protect the rights of the Brokers and proceed. There is nothing to lose in signing those documents. This is how it is usually done and this is how it should be."
The Court, in giving its decision, summarized some of the key principles from previous cases, where there was a "battle of the forms": The contract must be read objectively; In most cases, a contract is formed once the last set of terms is sent and received, without the recipient objecting;