Facts
- In a family business, 3 brothers loaned money to their business, on the agreement between themselves that if any of them resigned as a director, they would forfeit their loaned money
- One brother resigned and attempted to recover the money he was owed
Issue
- Could the remaining 2 brothers rely on a contract to which the company was a third party
Decision
- Yes, claim failed
Reasoning
- A family agreement can have legal implications, the agreement could be relied upon
