Contract or no contract?


Anyone negotiating commercial contracts will recognise the scenario where, because of the urgent need to get on with the project, work is allowed to start without there being a fully concluded agreement on all of the terms of the contract. In the absence of a signed agreement in this case, a contract was initially found to exist, then on appeal the Court said there was no contract and now the Supreme Court (SC) has held a contract was indeed in place after all, albeit on different terms to the initial judge. How is that for certainty? Ultimately the SC ruled that by their behaviour, R and M had adhered to the contract’s demands and had effectively waived the requirement for a formal exchange of signed documents.



points to note:

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