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ARTICLE · 08 SEPTEMBER 2011

Contracts: Keeping Formalities To A Minimum

A feature of English contract law is the willingness of the court to recognise the realities of commercial life.

United KingdomCorporate/Commercial Law
Mike Kilbee
Mike Kilbee

Commercial Thinking

A feature of English contract law is the willingness of the court to recognise the realities of commercial life. These realities often result in contracts, or perhaps alleged contracts, being in anything other than a neat and tidy document which has indisputably been signed by duly authorised persons. The Commercial Court demonstrated this in the case of Golden Ocean Group Limited v Salgaocar Mining Industries Pvt Limited, Mr Anil V. Salgaocar [2011] EWHC 56 (Comm). The dispute related to the chartering of a ship and a guarantee of the charterer's obligations and the court had to consider a range of questions regarding contracts and guarantees which could easily relate to any number of commercial transactions. The court proceedings were brought in order to determine whether the Claimant, Golden Ocean Group, had an arguable case and, if so, that it should be permitted to issue proceedings in the English courts and serve them on the defendants in

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