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07 Oct 2011

Side letter not legally binding despite need for good faith

BARBUDEV v EUROCOM CABLE MANAGEMENT BULGARIA Side letters are often signed in commercial transactions, sometimes when circumstances do not permit all the terms agreed to be incorporated into the formal contract. This case has highlighted that care must be taken to ensure that if a side letter is made with the intention to create a legally binding agreement, its terms must be sufficiently certain so that it is not treated as an unenforceable 'agreement to agree'.


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