For a contract to come into existence there has to be not only an intention to create legal relations but an agreement as to the terms of the contract. In a commercial contect there is a presumption of an intention to create legal relations. However, a clear and unambiguous express term stating that the parties did not intend their agreement to create legal relations was indeed binding upon them. It is the duty of the court to give proper effect to the terms agreed between the parties, whatever the reason for its introduction. The appeal failed. A party breaching a gentlemen’s understanding or agreement suffers damages to his honour and standing or reputation whilst the other party who is affected by the breach recovers nothing and cannot turn to the Courts to seek relief
Judges:
Earl of Birkenhead, Lord Atkinson, Lord Sumner, Lord Buckmaster, Lord Phillimore
Citations:
[1924] UKHL 2, [1925] AC 445
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Rose and Frank Co v J R Crompton and Bros Ltd CA 1923
The court considered whether a contract had been brought into existence.
Held: Scrutton LJ said: ‘Now it is quite possible for parties to come to an agreement by accepting a proposal with the result that the agreement does not give rise to . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 09 July 2022; Ref: scu.248476
