Terry v. Conlan

In Terry v. Conlan (2005) 131 Cal.App.4th 1445, the court addressed whether a settlement agreement in a probate dispute over the disposition of three parcels of real property contained all of the material terms necessary to create an enforceable agreement. Although the "negotiations did lead to an agreement between the parties on the goals of the settlement" (including planned transfers of property), "the parties' mutual assent to the goals of the settlement" was "not sufficient to demonstrate the enforceability of the settlement agreement" because of the "failure to agree to the material means to achieve the goal of the settlement." (Id. at pp. 1458-1459.) The means of achieving a settlement may include creating a mechanism for management of the subject property, or the nature of holding title to the property. (Id. at pp. 1452, 1459.) These details are important to the method in which the goals of the settlement would be achieved, and those missing terms would have "significant financial impact on the parties." Thus, the court concluded that the settlement omitted material terms, which made it unenforceable. (Id. at p. 1459.)