Side letter confirmed as non-binding agreement to agree

BARBUDEV v EUROCOM CABLE MANAGEMENT BULGARIA (CA) [2012]

The Court of Appeal (CA) confirmed that a side letter was a non-binding agreement to agree but, contrary to the High Court judge, found that the letter did show an intention to create legal relations, which is one of the necessary elements for a contract to be formed.

Facts:

See September 2011 for the facts of this case. B appealed the decision that the side letter he and E had entered into was unenforceable. The CA dismissed the appeal and rejected B’s claim for over €5m in damages against E.

Decision:

Points to Note:

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