Immingham Storage Company Ltd v Clear Plc

Immingham Storage Company Ltd v Clear Plc

The Court held that the email exchanges, particularly the signed quotation and the claimant’s acceptance, objectively demonstrated an intention to create a binding contract, and the reference to a formal contract following in due course was merely an expression of desire for a subsequent formalisation, not a condition precedent to contract formation.

Parties
Claimant: Immingham Storage Company Ltd; Defendant: Clear PLC
Jurisdiction
England and Wales
Judgment Date
09 February 2011
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Formation of Contract, Intention to Create Legal Relations, Effect of 'subject to Contract' Clauses, Acceptance of Offer, Conditionality in Contract Formation

Case Brief

Summary, issues, holding and outcome

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Parties

Immingham Storage Company Ltd

Claimant

Clear PLC

Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

  1. 1 Whether a binding contract was formed between the parties via email exchanges
  2. 2 Effect of provision for execution of a further written contract on contract formation

Ratio Decidendi

The Court held that the email exchanges, particularly the signed quotation and the claimant’s acceptance, objectively demonstrated an intention to create a binding contract, and the reference to a formal contract following in due course was merely an expression of desire for a subsequent formalisation, not a condition precedent to contract formation.

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed.
  • Judgment for the claimant for damages for breach of contract in the sum of £197,110.77 including interest.