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Formation

Wishful thinking – when is an agreement a binding contract?

Jason Rix

During a conversation, in the Horse and Groom, Mr Ashley said he’d pay Mr Blue £15 million if Mr Blue could get the price of Sports Direct shares to £8. Mr Blue agreed and those present laughed. Thirteen months later the Sports Direct share price had risen from £4 to £8. In Blue v Ashley Read More

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Renegotiation clause in long-term contract – what if parties cannot agree?

Alex Hiendl

In Associated British Ports v Tata Steel, the court upheld a provision in a 25-year licence which referred a failure to renegotiate terms in certain circumstances to arbitration. The clause in question, provided that either party could serve notice on the other to renegotiate the agreed terms “in the event of any major physical or Read More

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A done deal: when a contract has been formed

Richard Farnhill

In order to consider whether a contract has been formed the court will need to look at the parties’ exchanges to determine whether an agreement has been reached. That is an objective exercise: the court puts itself in the position of a third party observer to the parties’ negotiations and determines when that third party Read More

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