A contract is not a state of mind

Tony bingham 2017 bw web

Starting work without a proper contract is common practice, but it’s what’s on paper that counts, not what’s in your head

This story will ring a bell with all of you constructors. When I heard about the recent court case Anchor 2020 Ltd vs Midas Construction Ltd, I muttered “Here we go again”. Then “Nothing ever changes”, followed by “Don’t call these building folk silly”. The best line in the case is where the judge says, “The parties were not lawyers and even if they were, their analysis of the true contractual position might not be correct.” 

Another good line is where the judge says of the employer, “I agree that during this cross-examination, he did stick to what he says was his belief that the contract had been made on 21 July, as if it were some kind of mantra. To that extent his evidence was not persuasive. However, ultimately, what he thought as to the existence of the contract, or not, or when it was made, is not in any way determinative. It is a matter for the court to decide objectively.” Not a bad note to put on your shaving mirror. In short, it doesn’t matter a jot what you think the contract says or intends or even whether it exists; no court will take your word for it, nor arbitrator, nor adjudicator. 

Already registered? Login here

To continue enjoying Building.co.uk, sign up for free guest access

Existing subscriber? LOGIN

 

Stay at the forefront of thought leadership with news and analysis from award-winning journalists. Enjoy company features, CEO interviews, architectural reviews, technical project know-how and the latest innovations.

  • Limited access to building.co.uk
  • Breaking industry news as it happens
  • Breaking, daily and weekly e-newsletters

Get your free guest access  SIGN UP TODAY

Gated access promo

Subscribe now for unlimited access

 

Subscribe to Building today and you will benefit from:

  • Unlimited access to all stories including expert analysis and comment from industry leaders
  • Our league tables, cost models and economics data
  • Our online archive of over 10,000 articles
  • Building magazine digital editions
  • Building magazine print editions
  • Printed/digital supplements

Subscribe now for unlimited access.

View our subscription options and join our community