Telford v Pattison [1964] JJ 411 (04 August 1964)

If parties' subsequent behaviour shows they treated the agreement as final, the 'subject to contract' wording does not prevent the agreement from being immediately binding.

Citation: [1964] JJ 411
Parties: Applicant: Telford; Respondent: Pattison
Jurisdiction: Jersey
Judgment Date: 04 August 1964
Procedural Posture: Civil / Judgment
Outcome: judgment for applicant
Legal Topics: Contract of Sale, Subject to Contract, Intention to Create Legal Relations

Land Law Contract Law Contract of Sale Subject to Contract Intention to Create Legal Relations

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Parties

Telford

Applicant

Pattison

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

1 Whether a contract of sale marked 'subject to contract' is binding if parties intended to be immediately bound
2 Whether subsequent conduct can show intention to be bound despite 'subject to contract' wording

Ratio Decidendi

If parties' subsequent behaviour shows they treated the agreement as final, the 'subject to contract' wording does not prevent the agreement from being immediately binding.

Court Disposition

judgment for applicant