Treasury Min. v. Harcourt Devs. [2014] 2 JLR 353 (25 September 2014)

Treasury Min. v. Harcourt Devs. [2014] 2 JLR 353 (25 September 2014)

An agreement to negotiate terms of a contract 'in good faith' and 'with due diligence' is too uncertain to be enforceable, and therefore a claim for inducing breach of such an agreement discloses no reasonable cause of action and must be struck out.

Citation
[2014] 2 JLR 353
Parties
Claimant: Treasury Minister; Defendant: Harcourt Developments
Jurisdiction
Jersey
Judgment Date
25 September 2014
Procedural Posture
Civil / Strike Out Application
Outcome
claim struck out
Legal Topics
Certainty of Contract Terms, Agreement to Negotiate, Good Faith Negotiations, Inducing Breach of Contract
Contract Law Certainty of Contract Terms Agreement to Negotiate Good Faith Negotiations Inducing Breach of Contract

Case Brief

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Parties

Treasury Minister

Claimant

Harcourt Developments

Defendant

Procedural Posture

Civil / Strike Out Application

Legal Issues

  1. 1 Whether an agreement to negotiate 'in good faith' and 'with due diligence' is sufficiently certain to be enforceable
  2. 2 Whether a claim for inducing breach of such an agreement discloses a reasonable cause of action

Ratio Decidendi

An agreement to negotiate terms of a contract 'in good faith' and 'with due diligence' is too uncertain to be enforceable, and therefore a claim for inducing breach of such an agreement discloses no reasonable cause of action and must be struck out.

Court Disposition

claim struck out

Orders

  • Claim for inducing breach of agreement to negotiate struck out as disclosing no reasonable cause of action