Where an agreement reached through offer and acceptance contains the phrase "this agreement is subject to formal contract," the agreement itself is unenforceable unless and until the formal contract comes into existence.

Question

Quizplus · Accepted Answer

The phrase "this agreement is subject to formal contract" indicates that the parties intend to be bound only upon the execution of a formal contract, making any prior agreement unenforceable until such a formal contract is finalized and signed.

Where an Agreement Reached Through Offer and Acceptance Contains the Phrase