Heads of terms agreed at a mediation created a legally binding contract

  • PP 2019/101
The parties in Abberley v Abberley [2019] EWHC 1564 (Ch) were farmers who could not agree how to divide assets between them following the dissolution of their partnership. So they resorted to mediation, during which they agreed to divide the partnership land between them. But, following the mediation, further points were raised, which led, ultimately, to a dispute about the status of the heads of terms. Did the fact that the parties had contemplated signing a more formal document deprive the heads of terms of any contractual status? The judge cited Immingham Storage Co. Ltd v Clear plc [2011] EWCA
Practice point