Pendragon Plc v Jackson [1998] UKEAT 108_97_3006 (30 June 1998)

The ESPIP was expressly stated to be non-contractual, negating any intention to create legal relations; thus, no enforceable obligation to pay arose and the claim for breach of contract fails.

Citation: [1998] UKEAT 108_97_3006
Parties: Appellant: Pendragon Ltd; Respondent: Mr Jackson
Jurisdiction: United Kingdom
Judgment Date: 30 June 1998
Procedural Posture: Employment Appeal / Appeal From Industrial Tribunal Decision
Outcome: appeal allowed, claim dismissed
Legal Topics: Breach of Contract, Intention to Create Legal Relations, Employee Incentive Schemes

Employment Law Contract Law Breach of Contract Intention to Create Legal Relations Employee Incentive Schemes

Case Brief

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Parties

Pendragon Ltd

Appellant

Mr Jackson

Respondent

Procedural Posture

Employment Appeal / Appeal From Industrial Tribunal Decision

Legal Issues

1 Whether the Executive Share Price Incentive Plan (ESPIP) was contractually binding
2 Whether the respondent was entitled to damages for breach of contract under the ESPIP

Ratio Decidendi

The ESPIP was expressly stated to be non-contractual, negating any intention to create legal relations; thus, no enforceable obligation to pay arose and the claim for breach of contract fails.

Court Disposition

appeal allowed, claim dismissed

Orders

Industrial Tribunal decision set aside
Claim for damages for breach of contract dismissed