ABSTRACT
On 5 March 2004 Smit B.V., a company from Holland, enters into negotiations with Dumbreck GmbH, a company from Germany, over the sale, delivery and installation of a computer network at a price of €40,000. to the Smit company. A letter of intent is often used during negotiations. Of crucial concern during the negotiations are the costs of building an engine. In order to determine whether any legal problem could arise from breaking off negotiations, obviously one needs to take a close look at the facts and how the negotiations stood at the moment they were broken off. When discussing the legal status of negotiations, the documents connected with it and the options for claiming damages from the party that pulled out of the negotiations are relevant. In the final stage the negotiations have reached a point where an agreement is within reach.
