Mike Ashley the millionaire majority shareholder of clothing retailer Sports Direct was recently sued for an alleged deal he made in a pub with an associate called Jeffrey Blue. The court case concerned an alleged oral contract made between Ashley and Blue during an alcohol fuelled evening in a pub where Blue alleges to have reached an agreement with Ashley for a payment of £15,000,000 to Blue if he could get Sports Direct’s share price above £8 per share.
The key question to the court was whether this oral agreement was binding or whether it was just pub banter as alleged by Ashley. The court considered the facts and found that no contract was formed as a reasonable individual would not have believed there was any intention to create an agreement that evening.
The case gives a warning to those looking to enter in to binding legal agreements of the potential dangers of not properly completing all of the contractual formalities. We at Contract Canary help you to avoid these pitfalls, contact us at firstname.lastname@example.org