"It's all approved" - how easily a phone call can create a legally binding agreement

In the case of Carlyle v Royal Bank of Scotland, the UK Supreme Court allowed the appeal of a borrower who claimed that pre-contractual discussions constituted a legally binding agreement.  The lending bank had called the borrower informing him that his loan application was all approved.  The borrower argued this committed the lender not only to advancement of the loan amount but also advancement of funds to cover development costs.   This case raises the importance of clearly expressing what each party intends to be legally bound by.

Click here to read the full version of the judgement

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