Settlement negotiations and what constitutes a binding agreement — Newbury v Sun Microsystems

This High Court case is a reminder of the importance of ensuring that all settlement negotiations are marked ‘subject to contract’ until the point where the formal written agreement is executed. If agreement has been reached on the amount of compensation but there are still points to be agreed on tax, benefits, announcements, confidentiality or the exact wording of the settlement agreement, then it is essential that the negotiations remain marked as ‘subject to contract’ (and for that matter ‘without prejudice save as to costs’)…

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