Can a verbal negotiation create a binding agreement?

In a recent case successfully run by HopgoodGanim, the Queensland Court of Appeal has highlighted the circumstances in which verbal negotiations can create a binding agreement.

In this Alert, Partner Ian Hughes and Solicitor Jessica Carroll discuss the case and the decision on the subsequent appeal. The full decision can be accessed here.

Key points on the decision

• Verbal negotiations can create a binding agreement, even though essential terms have not been agreed and the parties had first expected to sign a document recording it.
• The conduct of the parties – during the negotiations and afterwards – may be considered when deciding whether or not there is a binding agreement.