Commentary

21 Documents the legal effect of which is unclear

COMMERCIAL CONTRACTS vol 7(2)
| Commentary

21 Documents the legal effect of which is unclear

| Commentary

5: CATEGORIES OF DOCUMENTS NOT USUALLY LEGALLY BINDING OR WHERE STATUS IS DOUBTFUL (EG HEADS OF TERMS, COMFORT LETTERS)

21 Documents the legal effect of which is unclear

It may be unclear whether certain documents are legally binding on parties to them. This could be for a number of reasons eg:

  1. 21.1

        the document is drafted in such a way that there are no obvious obligations imposed on one or more of the parties;

  2. 21.2

        the document is drafted so that it obviously defeats the rules as to consideration (eg no consideration is provided by one party, or the consideration is

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