How To Avoid Making A Contract Before You're Ready

A recent Court of Appeal decision has highlighted the risk of entering into a contract via informal channels such as WhatsApp, emails, text messages and phone calls, before any formal written agreement has been drawn up. We look at how to ensure that you're not committed until you're actually ready to be legally bound.

DAZN v Coupang: what happened?

Coupang, a South-Korean e-commerce and streaming provider, sought to acquire a sub-license for the broadcasting rights in the South Korean market for the FIFA Club World Cup from DAZN, a London-based subscription sports streaming service. Negotiations took place primarily through WhatsApp messages, emails and phone calls where the parties agreed key terms, including consideration, exclusivity rights and territorial scope. The parties also agreed that they would enter into a more detailed written agreement. Before that could happen, DAZN received what it regarded as a better offer. Coupang argued that DAZN was already