- Booker and Wilson entered into an agreement to rent a car park and service station.
- When they made the agreement, they were still trying to settle on an rent amount.
- The contract stipulated if they could not agree on a rent, then a 3rd party arbitrator would decide.
- They could not decide on a rental amount.
- Wilson tried to exercise this option but Booker said that the contract was unenforceable due to uncertainty – i.e. it was just an agreement to agree.
- Was the agreement enforceable?
- The Court held that the agreement was enforceable.
- Had the agreement not specified a mechanism to resolve the issue, then it would have been unenforceable.
- However, because the parties had agreed on what to do if they could not agree, then the agreement was complete and therefore enforceable.
Save this case