SBG 136/2015
This case involved an agreement to set up a company where the agreed capital was not paid in by the defendants. A key issue was the status of evidence of an agreement of a memorandum of understanding.
Background
A claimant filed a case against two defendants before the court. He said that he had agreed with the defendants to establish a company. He said that the defendants agreed to finance the company and that he was assigned to proceed with the procedures of setting up the company. He said that the defendants failed to commit to the signed contract. He requested the court to order the defendants to pay him 20% of the company's capital.
The defendants claimed that they had signed a memorandum of understanding and not a contract.
Decision
The court considered the documents of the case and concluded that the defendants did not sign a contract but a memorandum of understanding.
The court dismissed the case.
The claimant appealed the ruling before the court of appeal.
The court dismissed the appeal and upheld the appealed ruling.