MEMORANDUM SUFFICIENTLY CERTAIN TO CREATE BINDING OBLIGATIONS

Bell Scaffolding (Aust) Pty Ltd v Rekon Ltd and Alba Hire & Sales Ltd [2006] EWHC 2656 (TCC), 25 October 2006

In Bell Scaffolding (Aust) Pty Ltd v Rekon Ltd and Alba Hire & Sales Ltd [2006] EWHC 2656 (TCC), 25 October 2006, Mr Justice Ramsey held that the terms of a ‘Memorandum’ agreed between the parties created binding and enforceable obligations. The decision illustrates the reluctance which many judges have to conclude that an apparent agreement is too uncertain to be enforced, particularly in the case where the parties have acted on the basis of the agreement over a period of time.