From OUT-LAW News, 11/03/2010
A deal was governed by a contract despite the two companies involved not actually signing and exchanging copies of it, the Supreme Court has ruled. The contract is in effect because the firms behaved as if it was, it said. Molkerei Alois Müller Müller hired RTS Flexible Systems to provide and install a series of packaging machines in a deal worth about £1.7 million.
The two companies negotiated a complex contract whose schedules covered issues such as limits of liability, testing, prices and payment structures and other details of the deal.The companies agreed that work should begin based only on an outline deal covered by a letter of intent. When that ran out negotiations on the full contract proceeded, concluding on 5th July 2005 with some further amendments to the delivery timetable on 25th August.
READ THE REST OF THE ARTICLE: Contract was in place because companies behaved as if it was, says Supreme Court | Pinsent Masons LLP.