When actions speak louder than words: the dangers of commencing works under a letter of intent

On 10 March 2010 the Supreme Court delivered judgment in RTS Flexible Systems Ltd v Molkerei Alois Muller Gmbh & Company, finding that the parties were bound by the terms of a draft contract which had not been signed and despite an express subject to contract provision, where they had commenced performance of the contract under a letter of intent.