Contract Formation By Email And Following Purchasing Procedures

• Published date: 02 December 2020
• Law Firm: Kemp IT Law
• Author: Ms Noreen Ajmal

How the case of Athena Brands Ltd vs Superdrug reminds us of the pitfalls

For a binding contract, we know that English law requires certain key components - those being, an offer, acceptance, consideration, and an intention to create legal relations. We also know that legally binding contracts can be formed over email - which is a hugely convenient practice for many businesses. However, creating contracts by exchanging emails comes with pitfalls that can cause problems if company procedures are not followed properly. Particular care needs to be taken to avoid accidentally creating a contract that one party did not intend or entering one on unclear terms. The case of Athena vs Superdrug¹ decided in December 2019, clearly shows the dangers of businesses failing to follow their purchasing procedures.

The case involved an exchange of emails between a Brand Manager of Athena and a...