Do An Agreement
While Teare J. acknowledged that it was possible for the parties to omit certain conditions provided they were agreed at a later date, it stated that the applicable agreement required the creation of certain objective criteria in order to guide the future agreement on the omitted conditions. Teare J. said that if a party were to unilaterally define important aspects of the agreement that had not yet been concluded, the agreement should contain very clear words to that effect. It was not enough that the agreement was provided for Dhahani to devote his working time to the creation of the fund structure. When courts must verify the existence of a binding contract between two parties, they must ensure that, as far as possible, the intention of the parties to the agreement takes effect. The courts may view any uncertainty as an indication that the parties did not want to be linked, but this will not always be the case. Management indicated that an agreement had been reached with the unions. Such an agreement currently exists for an influenza pandemic, Phelan notes, but not for any other type of disease or vaccine. Teare J. addressed two separate issues. He first considered whether the parties intended to form legal ties.
Second, it examined whether the letter and the terminology sheet were sufficiently secure to allow the agreement to be implemented. Dhahani makes it clear that the two issues that need to be considered in the decision are that an incomplete agreement is binding on the parties: Teare J acknowledged that many of the fund`s important features had been agreed upon at the time of signing the prospectus. However, he also acknowledged that some crucial terms have not yet been used. In particular, he considered that Crasianski wanted advice on the tax consequences of an agreement on the headquarters and the nature of the fund`s structure. Teare J. rejected Dhalani`s argument that Crasianski missed the opportunity to negotiate residency and structure issues by signing an agenda on these issues. Parties wishing to establish legally binding agreements, which are incomplete, must therefore ensure that as many important conditions as possible are agreed and, for those who do not, that there is a very clear mechanism for how the remaining conditions will be agreed in the future.