At an enforcement hearing, the main issue was whether the contract between the parties was entered into before or after 1 May 1998 (the relevant date for the commencement of the Act). A letter of intent was issued in December 1997. On 3 April 1998, the parties signed a DOM/1 contract although there were still material matters that were not concluded between the parties such as the scope of work. By letter dated 8 May, Atlas confirmed it required the bill of quantities to be included in the contract documents. A further letter of intent was then sent in May 1998 but was dated the same date as the first letter of intent. One year later, in discussions regarding the Final Account, the parties agreed the DOM/1 contract should be exchanged without delay and on 12 April 1999 the signed DOM/1 form was sent to Crowngate.

The Judge concluded that the activities, actions, expressions and statements in documentation emanating from Crowngate pointed clearly away from there being in the minds of the parties a concluded contract on or after 3 April. Rather the contract took effect for the first time on about 12 April 1999. Both parties lacked the necessary contractual intention to enter into the contract on 3 April 1998. The contract could not be entered into in December 1997 as the DOM/1 contract did not refer to the letter of intent and could not, as a matter of construction, be read with, or qualified by, the earlier document. Although the DOM/1 contract had a retrospective effect, this did not affect the date it was entered into for the purposes of the Act.