The Case

Jordan Latham played rugby league for Manly Warringah Sea Eagles Limited (Manly). In negotiating his fee for the 2016 season, Manly’s recruitment manager emailed Mr Latham’s manager as follows:

“I can ... offer $55,000.”

Mr Latham’s manager a couple of days later sent an email to Manly’s recruitment manager as follows:

“We would like to agree on the below. Could you draw up a contract and I will get it signed ASAP.”

Manly later told Mr Latham that it would not be honouring the deal outlined in the emails. Mr Latham commenced proceedings against Manly to enforce the contract.

The Verdict

The Court found a contract had been formed between Manly and Latham in that there had been an offer and acceptance.

Manly argued:

• the intention of the parties was not to make a concluded agreement, unless and until they executed a formal contract; and
• pursuant to the National Rugby League Rules (the NRL Rules), there could be no contract until such time as the contract was registered by the NRL.

However, the Court found that:

• there had been an offer and acceptance by the email exchange;
• it was clear from the emails that the parties intended to be bound by the agreement – Mr Latham had clearly accepted the offer of money to play for Manly; and
• the NRL Rules do not prevent the parties from entering into a contract. There is a clear implied term that once agreement was reached the parties would do all things necessary to execute a contract that complied with the NRL Rules.

Lessons For You

The case emphasises the importance of clearly indicating when you intend to be bound by an agreement. It may assist in communications to clearly state that negotiations will not be finalised and no contract will come into existence until such time as further terms are fully negotiated and the parties enter into a contract that is signed by the parties.

Please note: Case law is reported as correct and current at time of publishing. Be aware that cases in lower courts may be appealed and decisions subsequently overturned.