It is often thought that for a binding contract to be created, you have to ‘sign on the dotted line’, but most contracts do not need to be in writing to be valid.
In a recent case, the claimant argued that he had made a contract with the defendant for the latter to purchase the whole of his shareholding in a company called Premier Resorts Limited. The sum claimed was £346,760. The narrow point at issue was whether a legally enforceable contract had been created by the exchange of unsigned emails and ancillary correspondence and as the result of a conversation in a taxi – but without a formal contract having been created.
The judge found that the contract was validly created and enforceable.
Be careful what you agree ‘informally’.
Partner Note
Grant v Bragg and others [2009] EWHC 74 (Ch). See