Mr.Blue enters into negotiation with Mr.Green to build a house.Both parties expected a written and signed purchase agreement.After agreeing on the terms,Mr.Green is told by his subcontractors that some of their prices have gone up.Mr.Blue objects and indicates that there was a contract when the parties agreed to the original terms orally.A court will find that no contract existed since the parties expected acceptance to be in written form.

Question

Quizplus · Accepted Answer

A party to the agreement who now wants out of the deal may argue that the parties did not intend to be bound until both parties signed the writing.A clear expression of such an intent by the parties during the negotiation process prevents the formation of a contract until both parties have signed.

MrBlue Enters into Negotiation with Mr