Employment Matters — February 2014: settlement negotiations ‘subject to contract’
A recent case in the high court (Newbury v Sun Microsystems) illustrates the importance of ensuring that all settlement negotiations are stated to be ‘subject to contract’ — otherwise you could find yourself bound by a contract you did not intend to make.
In this case, in the context of a claim for unpaid commission, the employer’s solicitor wrote to the employee’s solicitor to propose an offer of payment ‘in full and final settlement of the claim’ to be paid within a certain time frame, with provision that ‘such settlement [was] to be recorded in a suitably worded agreement’.
The claimant’s solicitor accepted this offer on the claimant’s behalf in a letter marked ‘without prejudice save as to costs’ and agreed to forward a draft agreement setting out the terms. There was then a disagreement over the form of the agreement and the employer decided that it no longer wished to proceed with the settlement…
If you are registered and logged in to the site, click on the link below to read the rest of the Collyer Bristow briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Collyer Bristow
News from The Lawyer
Briefings from Collyer Bristow
Banks have become very active in recent months selling off large portfolios of loans.
An investigation is to be carried out into the causes of the bankruptcy of OW Bunker, the largest ship fuel supplier in the world.