December 2, 2013
This article was first published in the October > December 2013 edition of the Australian Insolvency Journal.
External Administrators need to remain wary of the potentially binding nature of agreements even in the absence of a formal contract. It is a common misconception that a deal is not binding until a contract is signed. Such a misconception is largely born out of the utilisation of ‘subject to contract’ clauses. The recent decision in Chan v Four C Realty 1 where the Liquidators were found to be bound by an agreement despite a statement that it was subject to a formal agreement being signed is a cautionary reminder for all external administrators and their advisors.
View the paper here : Subject to contract: a lesson from Chan v Four C Realty Pty Ltd (in liquidation)