Certainty Flashcards

(2 cards)

1
Q

Watford v Miles

A

Ratio: An agreement to negotiate is not recognised as an enforceable contract as it lacks the necessary certainty

Major reason why is - a duty to negotiate in good faith is unworkable and uncertain

However - lock out agreements can be enforceable provided that there is a specified time period and good consideration

Facts: 1st Ds and 1st plaintiff orally agreed to deal exclusively
The Ds then started negotiating with someone else

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2
Q

RTS Flexible Systems Ltd v Molkerei Alois Muller

A

Ratio: the parties do not need to have agreed every detail of their agreement but must have agreed the terms that the law requires as essential for the formation of legally binding agreements

Therefore an agreement is not incomplete merely because it calls for some further agreement between the parties

Facts: Issue arising terms of the contract whether they were intending to be bound by those terms in installing machines for D

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