August 28, 2025
British Steel Corp v Cleveland Bridge [1984] 1 All ER 504; QB
British Steel delivered steel nodes after receiving a letter of intent but before a formal contract was concluded. When negotiations failed and payment was refused, the court held no contract existed but allowed recovery on a quantum meruit basis for work done. Facts British Steel Corporation delivered steel nodes to Cleveland Bridge and Engineering Co Ltd following a letter of intent to purchase. However, no formal contract was ever concluded because British Steel refused to accept Cleveland Bridge’s standard terms, and negotiations continued without resolution. The parties failed to reach agreement on progress payments and liability for late delivery. Cleveland


