If, at the beginning of negotiations, the negotiations are stated to be 'subject to contract', no contract can ever arise until exchange of the formal written and signed contract.

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Quizplus · Accepted Answer

Stating negotiations are 'subject to contract' means that the parties intend not to be bound until a formal contract is signed; however, it is possible for a contract to arise before formal exchange if both parties act as though a contract is in place, depending on the jurisdiction and specific actions of the parties.

If, at the Beginning of Negotiations, the Negotiations Are Stated