Should a letter of intent be sent out incorporating a limit of £20,000, should the employer proffer a higher amount of money if the contractor exceeds this limit?

Letters of intent commonly stipulate a maximum figure that the employer is prepared to pay. That is perfectly understandable. The employer needs to know the extent of any financial liability.

While there can be exceptions to this, and every case is to be considered on its individual merits, should a contractor be working to a letter of intent which specified a figure of £20,000 as a limit, the contractor can reasonably expect to be held liable should this figure be exceeded.