Emails can result in a binding contract, so long as there is enough dialogue between the parties and the terms within the emails are sufficiently certain. In Universal Music Australia Pty Limited v Pavlovic [2015] NSWSC 791 the court held that an email from a lawyer stating that the client would sign a settlement deed, when combined with other communication and conduct, was enough to constitute a binding agreement.

If parties choose to negotiate via email but don’t want the exchange to constitute a binding contract, it must clearly state in the emails that ‘no binding agreement is formed unless and until a formal contract has been executed.’ If this is omitted, a court could find the correspondence is binding.

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