Search our news, events & opinions

On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.

12 December 2013 0 Comments
Posted in Employment, Opinion

The importance of wording in binding agreements

Author headshot image Posted by , Partner

In Newbury v Sun Microsystems, the High Court has offered valuable views on what constitutes a binding agreement. In this particular case, the parties exchanged letters to the effect that an offer was made, was agreed, and it was stated that the agreement would be recorded in a “suitably worded agreement”. Neither letter referred to being subject to contract.

The High Court held that this exchange of letters constituted a binding agreement upon which the parties could rely. There was clearly an intention to create legal relations and the parties had agreed on all the essential terms. Only if the letters had contained the words “subject to contract” would it have been clear that the settlement terms were not agreed until a formal contract had been drawn up and concluded.

Hence the importance of ensuring that any such correspondence is carefully worded in accordance with what is actually intended.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.

Leave a comment

Thank you for choosing to leave a comment. Please keep in mind that comments are moderated and please do not use a spammy keyword or a domain as your name or it will be deleted.





It pays to employ the right employment solicitor

Learn more


T: 020 7842 1496 (DDI)

Search our news, events & opinions