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Reaching a successful agreement and avoiding litigation - Coggle Diagram
Reaching a successful agreement and avoiding litigation
It is risky for parties to conduct business with each other prior to an agreement being reached
Agree first, start work later
Caveat emptor
In entering into a contract with each other, sophisticated commercial traders must generally use their own judgment and/or take care to ensure that the terms of the applicable contact secure them what they want
You are free to enter into a bad bargain
Travers v Lismore
The Court cannot stop parties from entering into risky commitments
Investments during the Celtic Tiger
The courts are not impress with sloppy drafting
Importance of contemplating what might go wrong
Roche v Roche
-Married Couple create frozen embryos as part of IVF treatment
-Sign various consent forms with fertility clinic
-Couple separate
-Husband objects to his embryos being implanted into his wife
-The Supreme Court could was unable to grant relief to the wife, as they had not entered into an agreement as to what was to happen if they separated or divorced
Contracts are Interpreted on the basis of the words used, even if this gives rise to an unattractive result
The Courts can only apply recognised legal principles
Recognised legal principles may change
Generally a contract does not have to be in writing and so it is possible to conclude a legally binding agreement worth a significant sum of money verbally or by means of a handshake
However, recording an agreement in writing greatly reduces to chances of a subsequent dispute over what was actually agreed
Donnelly v Woods
Putting obligations in writing can refresh the memory and provide clarity
It is risky to negotiate in a pub
Blue v Ashley
"‘a contract can be made anywhere in any circumstances. But an evening of drinking in a pub with three investment bankers is an unlikely setting in which to negotiate a contractual bonus arrangement with a consultant who was meeting them on behalf of the company."
Be careful as regards to what you sign as you are generally bound by it
The court will strive to find a concluded contract if it can
Context is everything
A contract does not exist in a vaccum but comes about as a result of a relationship between the parties to it
the purpose of a contract is not normally to make you happy
When in doubt, seek advice