Bear Stearns Bank Plc v Forum Global Equity Ltd

Bear Stearns Bank Plc v Forum Global Equity Ltd

A binding contract was concluded on 14 July 2005 by oral agreement on price and essential terms, with intention to create legal relations, and the absence of an agreed settlement date or form of purchase did not render the contract too uncertain. Forum's refusal to perform was a breach, and damages are to be assessed by reference to the market value of the shares at the date Bear Stearns learned Forum had disposed of them.

Parties
Claimant: Bear Stearns Bank Plc.; Defendant: Forum Global Equity Ltd.
Jurisdiction
England and Wales
Judgment Date
05 July 2007
Procedural Posture
Commercial Contract Dispute / Judgment After Trial
Outcome
Judgment for the Claimant (Bear Stearns).
Legal Topics
Formation of Contract, Damages for Breach of Contract, Intention to Create Legal Relations, Certainty in Contract Terms, Measure of Damages, Mitigation of Loss
Contract Law Commercial Law Formation of Contract Damages for Breach of Contract Intention to Create Legal Relations Certainty in Contract Terms Measure of Damages Mitigation of Loss

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Parties

Bear Stearns Bank Plc.

Claimant

Forum Global Equity Ltd.

Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether a binding contract was concluded between Bear Stearns and Forum on 14 July 2005 for the sale of Parmalat notes
  2. 2 Whether the agreement was too uncertain or merely an agreement to agree
  3. 3 Whether the parties intended to create legal relations

Ratio Decidendi

A binding contract was concluded on 14 July 2005 by oral agreement on price and essential terms, with intention to create legal relations, and the absence of an agreed settlement date or form of purchase did not render the contract too uncertain. Forum's refusal to perform was a breach, and damages are to be assessed by reference to the market value of the shares at the date Bear Stearns learned Forum had disposed of them.

Court Disposition

Judgment for the Claimant (Bear Stearns).

Orders

  • Forum is liable in damages for breach of contract for failing to deliver the Parmalat notes/shares.
  • Damages are assessed at €1,618,670, calculated by reference to a market value of €2.67 per share as at 24 August 2006.