Rose and Frank Co v J R Crompton & Bros (1923) is an English contract law case that dealt with the issue of whether a contract containing a clause for non-binding agreement is enforceable or not.
In this case, Rose and Frank Co, an American company, entered into a contract with J R Crompton & Bros, an English company, for the sale of goods. The contract contained a clause stating that the agreement was not legally binding, but rather was intended to create a moral obligation between the parties.
After the goods were delivered, Rose and Frank Co attempted to sue J R Crompton & Bros for breach of contract. J R Crompton & Bros argued that the contract was not legally enforceable, as it contained a clause stating that it was not legally binding.
The court held that the contract was not legally enforceable, as it contained a clause stating that it was not intended to create legal relations. The court held that the clause was clear and unambiguous, and that it reflected the intentions of the parties. As such, the contract was not legally enforceable, and Rose and Frank Co’s claim was dismissed.
The case of Rose and Frank Co v J R Crompton & Bros is an important case in the law of contract as it established the principle that parties to a contract can agree to create non-binding agreements, and that such agreements are not legally enforceable. The case confirmed that for a contract to be legally enforceable, there must be an intention to create legal relations, and that the presence of a clause stating that a contract is non-binding can be conclusive evidence of such lack of intention.