Intent Over Ink: When Can An Unsigned Deed Bind Parties

The Supreme Court of Victoria ruled that parties were bound by a settlement deed sent unsigned by the defendants' solicitor and subsequently executed by the plaintiffs’ solicitor, even though the defendants ultimately refused to sign.

The Court assessed objective intention and communication history and found that the parties arrived at an agreement despite the absence of formal execution.

In issue

• Whether a deed of settlement, sent unsigned by the defendants’ solicitor to the plaintiffs’ solicitor and subsequently signed by the plaintiffs, created a binding agreement despite the defendants’ later refusal to sign, in the context of a mediation conference held two months earlier and ongoing negotiations.