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Unenforceable Contract
Last updated: 06-Oct-2014

Courtney & Fairbairn Ltd v Tolaini Brothers (Hotels) Ltd [1975] 1 WLR 297, per Lord Denning MR, at pp. 301-302:

If the law does not recognise a contract to enter into a contract (when there is a fundamental term yet to be agreed) it seems to me it cannot recognise a contract to negotiate. The reason is because it is too uncertain to have any binding force … It seems to me that a contract to negotiate, like a contract to enter into a contract, is not a contract known to the law… I think we must apply the general principle that where there is a fundamental matter left undecided and to be the subject of negotiation, there is no contract.


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