Memorandum Regarding Bear Stearns Bank plc v Forum Global Equity Ltd.
November 9, 2007
The recent decision of the English High Court in Bear Stearns Bank plc v. Forum Global Equity Ltd. [2007] established that parties to a distressed debt transaction concluded a binding oral contract at the time of the telephone conversation when agreement was reached on price, despite the settlement date, transfer mechanics and standard market convention terms being outstanding. This decision confirms the current position under English law that, as in the US, trades are binding upon oral agreement of the material terms.
Corporate associate Louisa Watt has written a short memo providing an overview of the decision and suggested "best practice" guidelines for debt market participants to follow when concluding trades.
