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United Kingdom intention to create legal relationsoffer and acceptance

Phones 4U Ltd v Phone 4u.co.uk Internet Ltd

[2006] EWCA Civ 244
JurisdictionUnited Kingdom
CourtEngland and Wales Court of Appeal
Year2006
StatusBinding authority

Summary

A letter of intent may create a binding contract if the parties intended immediate legal relations, assessed objectively from the document's terms and context.

Key Principle

The Court of Appeal held that a letter of intent may create a binding contract depending on the terms; the court must consider whether the parties intended to be bound immediately or only upon execution of a formal agreement.

Area of Law

contract

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