Sports Direct Case: 5 benefits of having a written agreement
Mike Ashley, Sports Direct boss, has recently won a High Court battle against investment banker Jeffrey Blue over an alleged £15 million deal made in a pub.
Jeffrey Blue alleged Mr Ashley made a verbal promise to pay him the million-pound sum if he increased Sports Direct’s share price to £8. Mr Ashley defended the claim on the basis that he could not remember the alleged conversation, but even if it had happened it would only have been banter. It was held that there was no contract between them because there was no mutual intention to create legal relations.
There are many benefits to having an agreement in writing. It can:
- provide proof of what was agreed between you and the other party;
- protect your interests more effectively than a verbal agreement;
- enhance your ability to enforce your rights under the agreement if there is a dispute;
- minimise the chance of any confusion between the parties in relation to the terms of the agreement; and
- clearly set out each party’s right and responsibilities under the agreement.
If you need any advice or assistance in relation to commercial contracts then please contact the Corporate and Commercial team.