Person A promises to provide X to person B, and in return B provides Y to A. All very straightforward stuff. However, a series of recent cases has shown the complicated legal wrangles in which parties can become embroiled over the seemingly simple question of “are they or are they not bound by a contract”.
In Cable & Wireless/Pender Insurance Ltd v Valentine & Ors [2005] in March, Mr Justice Cooke decided a signed letter of agreement in relation to various claims between the claimants and two potential defendants (Willis) was binding. This was despite the fact that Willis’ group general counsel, in the course of returning the letter (having just signed it), sent an accompanying e-mail ‘clarifying’ that Willis’ acceptance of legal responsibility for the claimants’ losses was to be shared with other parties.
