Lev and Drew have been negotiating verbally and in writing concerning the purchase by Lev of a number of items manufactured by Drew's company. Lev insists that they have only reached the stage of having an agreement in principle but Drew says they have a binding contract. If one of the terms they agreed upon verbally was that they would execute a written contract, the court will hold that a contract does exist.

Question

Quizplus · Accepted Answer

If the parties agreed that a written contract would be executed, it indicates that they did not intend to be bound until the written contract was signed, suggesting no binding contract exists yet.

Lev and Drew Have Been Negotiating Verbally and in Writing