What?: Bound by an Unsigned Contract?

If the Contract isn’t physically signed are you still bound?

Yes in some cases!

In Stellard v North Queensland Fuel Pty Ltd the Seller of a Road House tried to pull out of a contract with the Buyer because the Seller wanted to deal with another party (presumably for a better price). The Seller argued that the contract wasn’t signed.

However the Court decided the Seller was bound through an exchange of emails, even though the email communication was “subject to execution of the contract”.

Our Comment:

Be careful what you say in email communications when negotiating. You may found yourself bound by a legally enforceable contract.

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