Commentary

25.4 Drafting points—status and legal effect of documents

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

25.4 Drafting points—status and legal effect of documents

| Commentary

25.4 Drafting points—status and legal effect of documents

Identifying the status and particularly the legal effect of a document is of crucial importance. Case law has illustrated the need for clarity in describing the nature and legal effect of documents and the effect of the parties’ actions. The following points need consideration:

  1. (a)

        As a minimum, documents that are not intended to be legally binding or to create legal relations should be (clearly) labelled ‘subject to contract’. Without such wording, it may be unclear from the documents and actions of the parties whether an agreement has come into existence1. If

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