Store Properties v. Neal
California Court of Appeal
72 Cal.App.2d 112 (1945)
John and Clara Neal (defendants) offered Store Properties (plaintiff) a written proposal for a 99-year lease, specifying rent amounts for various periods and requiring the parties to sign an actual lease within 30 days of acceptance, with other terms (deposit, escrow) contingent on that future lease being signed; both parties signed the proposal, and Store Properties paid a $5,000 deposit and committed $30,000 toward improvements, but the parties never executed a lease and the Neals ultimately did not lease the property. Store Properties sued for breach, and the trial court dismissed the case; Store Properties appealed.
Whether a letter of intent is binding if the parties did not intend to be bound until they executed final documentation of their agreement.