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Actionstrength Ltd v International Glass Engineering [2003]

Facts

  • The claimants laboured for the defendants as a subcontractor to a third party
  • The third party (main contractor) did not pay the defendants, and the defendants promised to make the third party pay the claimant. The claimants did not get paid

Issue

  • Was the defendant’s promise (guarantee) to persuade enforceable

Decision

  • No contract existed, the promise was not enforceable

Reasoning

  • Guarantees must be evidenced in writing
  • McKendrick suggested that this illustrates the price of taking contractual form requirements seriously
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