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May and Butcher v R [1929]

Facts

  • May and Butcher agreed to purchase old tents from the Disposals Board
  • The Disposals Board’s terms stated ‘at a price to be agreed’
  • Agreement broke down

Issue

  • Could there have been a binding contract where there was no set price

Decision

  • No contract

Reasoning

  • An agreement to agree is not legally binding
  • The terms of the contract were too uncertain for the courts to enforce
  • As a price was to be agreed by the parties, the court could not enforce a reasonable price as per the Sale of Goods Act 1979
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