Legal Question in Business Law in United Kingdom

Unsigned Contract - Are ''Terms'' Binding

A Lmited Company entered into an agreement with a Partnership. Company took over the assets of the partnership. Terms of Agreement were drawn up and agreed but never signed by the partnership. The deal went ahead and each party acted according to the terms of the unsigned agreement. Agreement was for a fixed term of 5 years - now expired - Partnership claims that lack of signed agreement = lack of any agreement especially the time limit. Ltd Co says ''fine - if you say there is no agrement we'll just have all our money back and return your business to you'' - everything can be put back the way it was. What is the status of the unsigned agreement (if that is not in itself a contracdiction in terms!!!)


Asked on 8/16/06, 6:14 am

1 Answer from Attorneys
Andrew Dutton Legal -Zone

Re: Unsigned Contract - Are ''Terms'' Binding

The legal status of this unsigned contract is that it is an unsigned contract. It may be taken as evidence of what was agreed or it may be taken as evidence of what was proposed but not agreed. In other words this is fertile ground for lawyers and an invitation to spend many thousands on legal fees.

The situation here would suggest that there was indeed an agreement as evidenced by the company taking over the partnership assets.However the terms of that agreement could well be uncertain.

I would be pleased to advise further, either under our free advice service or otherwise, if required but will require further information.

Andrew Dutton

www.legal-zone.co.uk

[email protected]

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Answered on 8/20/06, 5:21 am


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