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Charter or contract?

By: Series: Contract Journal ; 406(6303) 15 November 2000, 28(1)Publication details: 2000Subject(s): Summary: Considers the formation of contract in relation to the case of "Birse Construction Ltd v St David Ltd". The judge decided that a contract had been formed between the two parties because they had signed a partnering charter before works started. Birse applied to the CA for permission to appeal against the decision. In examining whether the parties had reached a concluded contract, reference was made to the judgment in "Pagnan v Feed Products Ltd". Taking into account the key principles in "Pagnan", it was concluded that no contract had been formed, and Birse was entitled to remuneration on a quantum meruit.

Considers the formation of contract in relation to the case of "Birse Construction Ltd v St David Ltd". The judge decided that a contract had been formed between the two parties because they had signed a partnering charter before works started. Birse applied to the CA for permission to appeal against the decision. In examining whether the parties had reached a concluded contract, reference was made to the judgment in "Pagnan v Feed Products Ltd". Taking into account the key principles in "Pagnan", it was concluded that no contract had been formed, and Birse was entitled to remuneration on a quantum meruit.