In Brogden v Metropolitan Rly Co. (1877), Brogden had supplied the Metropolitan Rly Co. for years without a formal agreement. The parties then intended to formalize the arrangement and the Metropolitan Rly Co. sent Brogden a draft. Brogden completed the draft, filled in some of the details that had been left out including the name of the arbitrator and sent it back. The draft was handed to a manager and no further action was taken and the parties continued as per normal until a dispute arose. Brogden argued that there was no contract in place between the parties.
It was held that the fact that the parties continued to deal as per normal after the draft had been returned with the changes, indicated that there was a willingness to continue with the arrangement. The fact that both parties continued with their obligations as agreed constituted a contact.
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