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16-08-2013

Newbury v Sun Microsystems (12/8/2013): In this case, the claimant sought a declaration from the court that proceedings between the parties had been settled in correspondence. The defendant contended that they had made an agreement only in principle, subject to a suitably worded agreement.

The case was brought in the Queen's Bench Division, where the court ruled in favour of the Claimant. The correspondence had given rise to a binding legal contract between the parties. Execution of a further agreement had not been a condition of the creation of a binding agreement.

This is a situation we all encounter, agreeing the principal terms and then arguing for some time over individual clauses, so be careful to specifically add to all correspondence that the agreement is subject to detailed and final terms being agreed.

Frances Coulson (fcoulson@moonbeever.com)

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