3DM (3DMA) pte Ltd v 3DM 3DM Worldwide Plc


Reference:
[2006] All ER (D) 57 (Oct), LTL 2/11/2006

Date:
5th October 2006

Court:
High Court

Comment:

The claimant (C) alleged that a contract had been made between itself and the defendants (D), and brought an action seeking payment of a retainer allegedly due. C submitted that it had signed a contract brought to it by a business consultant who assisted the chairman /director of D, and had done so on the understanding that it created an immediate binding contract between C and D. D submitted that no such contract had been made, that it was D’s understanding that the agreement would only become binding once signed by both parties, and that the subsequent correspondence between the two parties evidenced that no contract had been made.


Held:
C had not proved that there was a binding contract between itself and D. The business consultant who had brought the agreement to C was neither an employee nor a director of D, and was not authorised to act as an agent on D’s behalf. It was also apparent from subsequent correspondence that the agreement had not taken effect, and would not do so until further matters had been resolved.

The claimant had failed to show that it had entered into a legally binding contract with the defendant.

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