Destiny 1 Ltd v Lloyds Tsb Bank Plc [2010] EWHC 1233 (QB) (15 June 2010)

Destiny 1 Ltd v Lloyds Tsb Bank Plc [2010] EWHC 1233 (QB) (15 June 2010)

No binding contract was formed between Destiny 1 Limited and Lloyds TSB Bank PLC for the provision of the guarantee, as the parties did not intend to contract on the guarantee in isolation from the wider package of transactions, and there was no valid consideration to support the alleged agreement.

Citation
[2010] EWHC 1233
Parties
Claimant: Destiny 1 Limited; Defendant: Lloyds TSB Bank PLC
Jurisdiction
England and Wales
Judgment Date
15 June 2010
Procedural Posture
Civil / High Court Trial Judgment
Outcome
Claim dismissed
Legal Topics
Formation of Contract, Offer and Acceptance, Consideration, Guarantees, Enforceability of Agreements
Contract Law Formation of Contract Offer and Acceptance Consideration Guarantees Enforceability of Agreements

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Parties

Destiny 1 Limited

Claimant

Lloyds TSB Bank PLC

Defendant

Procedural Posture

Civil / High Court Trial Judgment

Legal Issues

  1. 1 Whether a binding contract was formed between Destiny 1 Limited and Lloyds TSB Bank PLC for the provision of a guarantee.
  2. 2 Whether there was valid consideration to support the alleged contract.
  3. 3 Whether the alleged losses claimed by Destiny 1 Limited were caused by any breach.

Ratio Decidendi

No binding contract was formed between Destiny 1 Limited and Lloyds TSB Bank PLC for the provision of the guarantee, as the parties did not intend to contract on the guarantee in isolation from the wider package of transactions, and there was no valid consideration to support the alleged agreement.

Court Disposition

Claim dismissed

Orders

  • Action dismissed