Case of State of HP vs OYSYS Cybernetics Pvt Ltd, SC Judgement Dated 24th November 2025. The apex court held that a Letter of Intent (LoI) is merely a “precursor to a contract” and a “promise in embryo” which does not create any binding or enforceable rights until the stipulations and pre-conditions mentioned therein are fully satisfied. The Court set aside the HC judgment and ruled that the State Government decision to cancel a conditional LoI for non-compliance with technical prerequisites was a lawful exercise of administrative discretion and not arbitrary.