Case Summary -Carlton Communications Plc and Granada Media Plc v The Football League [2002]1/1/2022 Carlton Communications Plc and Granada Media Plc v The Football League [2002]
Facts of the Case In June 2020, ITV digital and the defendant entered into a written agreement where the defendant agreed to license ITV Digital the rights to broadcast its football matches for three seasons. Based on the contract, ITV digital must make a payment to the defendant of 135 millions gbp. However in March 2002, ITV digital when into administration before paying further sums due under the contract. The defendant, argued that the financial liabilities faced by ITV digital were guaranteed by the claimants. The claimants were the sole shareholders of ITV digital. It is based on the initial bid document for the broadcasting rights, the claimants had declared that ITV digitals and its shareholders will guarantee all funding to the football league. The bid document however was marked with ‘subject to contract’ and the contract in June 2000 made no mention of the guarantee by the claimants. Held The claimants were held not liable. Langley J stated that the initial bid document did not contain a unilateral offer from the claimants to guarantee ITV digital’s responsibility due under the June 2000 contract. It was based on the fact that the document was expressed to be subject to contract. ITV digital had no authority to act on the claimants’ behalf. The purported guarantee was also not effective as it was contrary to s4 of the Statute of Frauds 1677 where the guarantee must be in writing and signed by the party charged. Conclusions A guarantee contained in a bid document which was marked subject to contract was not binding.
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