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ARTICLE · 18 SEPTEMBER 2017

When does an email exchange turn into a binding contract? Which case won?

Stacks Law Firm
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The court had to decide whether the parties had intended to create a legally binding relationship by the email exchange.

AustraliaCorporate/Commercial Law
Nathan Heard
Nathan Heard
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The Facts

Lease due to expire and negotiations for a new lease begin

A case heard recently in Western Australia concerned a dispute between a landlord and a tenant of commercial premises in Perth.

The tenant had occupied the premises for six years and its lease was due to expire on 30 June 2009. In May 2009, the parties began negotiations for a new lease.

Proposals sent and email negotiations ensue

An initial proposed lease was rejected by the tenant and on 4 June 2009 the landlord's agent sent an email to the tenant attaching a revised proposal. The email stated: "Can you please confirm in writing that this proposal is acceptable to [the tenant] and we will arrange for [the landlord's] solicitors to prepare the draft documentation".

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