Could you please explain the principle behind the term ‘binding in honour only’? I do know that once that clause has been used in an agreement, it rebuts the presumption that the parties involved intend to create legal relations in a business agreement context. However, I don’t know what the clause means literally or the rationale for which it renders the business agreement presumption rebuttable. Any help, pls?
Or shall I just accept the clause for what it is and get on with it?
Just accept it!
It dates back to the time when people would enter contracts on the shake of a hand. I think it’s the stock exchange which has the motto “dictum meum factum” meaning “my word is my bond”
You must be logged in to reply to this topic.