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ARTICLE · 07 APRIL 2015

Agreements to negotiate: how binding can they be?

HopgoodGanim
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"Certainty" is a consideration for the Courts and agreements to negotiate can be legally binding if drafted correctly.

AustraliaCorporate/Commercial Law
Martin Klapper
Martin Klapper
Tim Edwards
Tim Edwards
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In Baldwin & Anor v Icon Energy Ltd & Anor [2015] QSC 12 (Baldwin v Icon), the Supreme Court of Queensland was given occasion to consider when an "agreement to negotiate" will be legally binding. HopgoodGanim were retained as the solicitors for both Icon Energy Limited (Icon) and Icon's wholly-owned subsidiary Jakabar Pty Ltd (Jakabar) in the proceedings.

In this alert, Partner Martin Klapper and Solicitor Tim Edwards discuss the outcome of the case and make recommendations for persons drafting agreements to negotiate.

Agreement to negotiate

  1. In June 2008, the second plaintiff Southern Fairway Investments Pty Ltd (SFI) entered into a Memorandum of Understanding (MOU) with Icon and Jakabar.

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