Introduction
Following my blog in July about the need for written contracts, I bet Jeff Blue wished for one after losing his case against Mike Ashley (the founder of Sports Direct)!
Summary
The BBC reported at http://www.bbc.com/news/uk-england-40727521 but in summary Mr Blue tried to claim that an oral contract had been made between him and Mr Ashley during a conversation in a London pub four years ago. He claimed that Mr Ashley had agreed to pay him a bonus of £15 million if Mr Blue could “get” Sports Direct’s shares trading at £8 per share. The court decided that no contract had in fact been made but not because such a contract could not have been made orally but because of the circumstances of the meeting. That is, in a pub with numerous other people and after consuming a few (or more than a few) pints.
The judge stated that “No reasonable person… would have thought that the offer to pay Mr Blue £15m was serious and was intended to create a contract.”
Comment
Commit all your business agreements, terms and conditions etc to writing!
This should not be relied upon for legal advice. If you would like any further information or advice please email richard@clariclegal.co.uk.