LITIGATION & DISPUTE RESOLUTION | 1 SEPTEMBER 2014
Court of Appeal confirms your word is your bond
A recent Court of Appeal decision confirms that a promise may become binding, even if non-contractual. The Court did not
clearly establish the circumstances in which it will enforce such promises. Each case will turn on its facts.
But the reminder for commercial players is clear: don't think that you're not bound by a commitment just because you've not contracted to perform it. At the
least, you could find yourself liable for the other person's expenses incurred in relying on your word. Worse, you may
have to follow through - even though you may no longer want to.