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Hi Sir,
I would like to clarify the reasoning behind the answer for the question below.
Q: which of the following statements as regards an acceptance of an offer ‘subject to contract’ is true?The answer is; it binds neither party.
But I am confused of the answer not being; it binds both parties.
Since when the offer is accepted then the contract legally binds both the parties into terms and conditions agreed by them.Please Sir explain the reasoning behind this.
Thanks!The expression ‘subject to contract’ is saying ‘yes, I’ll accept your offer and be bound when, and only when, we have formalised our situation by entering into a contract’
Effectively, it’s giving notice of intent to enter into a binding situation … but only after I’ve checked on one or two matters first
If you think about it, and knowing that acceptance must be complete and unconditional, an acceptance ‘subject to contract’ is not, in fact, an acceptance
OK?
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