X and Y orally agree on a deal. All material terms are present and certain. However, X and Y both want to delay the formation of a binding contract until they both sign a written agreement, and both clearly say so. Despite X's and Y's wishes, a contract was formed when their "minds met."

True / False.

Question

Gavyn Odonnell

Business

31 March, 15:38

X and Y orally agree on a deal. All material terms are present and certain. However, X and Y both want to delay the formation of a binding contract until they both sign a written agreement, and both clearly say so. Despite X's and Y's wishes, a contract was formed when their "minds met."

True / False.

+2

Answers (1)

Know the Answer?

Robert Yang · Answer 1

False

Explanation:

The answer is false because under such circumstances one key element of a contract is missing: acceptance. X and Y have not agreed to establish the contract until it is presented in written form and can be signed.

The terms of the contract are clear, and have been accepted by the participants, but the form of the contract has not, and for the contract to be binding, this last item has to be agreed upon.