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Rose and Frank Co v Crompton (1925)

Last modified: Thu Feb 23 16:37:37 2006

This case (Rose and Frank Co v Crompton [1925] AC 445) demonstrates that although commercial arrangements are assumed to have legal force (i.e., be a Contract), an agreement that expresses in clear terms that there is no contract will not be enforced by the courts.

The agreement between RF Co and Crompton contained a term to the effect that it was not ``a formal or legal agreement and shall not be subject to legal jurisdiction in the Law Courts''. The court therefore ruled that the parties did not have a legal contract, and no action could be taken on the basis of it.

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