RTS Flexible Systems Ltd (Respondent) v Molkerei Alois Muller Gmbh & Co KG (UK Production) (Appellant) [2010] UKSC 14, [2010] All ER (D) 95 (Mar)
Supreme Court, Lord Phillips (President), Lord Mance, Lord Collins, Lord Kerr and Lord Clarke 10 March 2010
The Supreme Court has considered the principles concerning the terms governing relations between parties where no formal contract has been concluded.
Stuart Catchpole QC and Charles Manzoni QC (instructed by Addleshaw Goddard LLP) for the respondent. Kenneth MacLean QC and Michael Fealy (instructed by Pinsent Masons LLP) for the appellant.
The defendant produced different brands of yoghurt and dairy rice products. The claimant specialised in the supply of automated machines for packaging and product handling in the food and consumer goods industry. The defendant wished to automate some of its processes and began negotiations with the claimant. Following a number of quotations by the claimant, the defendant sent a letter of intent, which covered an initial period, but which subsequently lapsed.
The claimant started work before the terms of the contract had been agreed. Negotiations
