"Subject To" Contracts
If a contract specifies "subject to contract", it may fall into one of three categories:
- The parties are immediately bound to the bargain, but they intend to restate the deal in a formalised contract that will not have a different effect; or
- The parties have completely agreed to the terms, but have made the execution of some terms in the contract conditional on the creation of a formalised contract; or
- It is merely an agreement to agree, and the deal will not be concluded until the formalised contract has been drawn up.
If a contract specifies "subject to finance", it imposes obligations on the purchaser:
- The purchaser must seek finance; and
- When offers of finance arrive, the purchaser must make a decision as to whether the offers of finance are suitable.
This may also refer to contingent conditions, which come under two categories: condition precedent and condition subsequent. Conditions precedent are conditions that have to be complied with before performance of a contract With conditions subsequent, parties have to perform until the condition is not met. Failure of a condition repudiates the contract this is not to necessarily discharge it. Repudiation will always gives rise to an action for damages.
Read more about this topic: Contractual Terms In English Law
Famous quotes containing the words subject to, subject and/or contracts:
“Life is not at all what you might think it to be
A simple tale where each thing has its history
It’s much more than its scuffle and anything goes
Both evil and good, subject to the same laws.”
—John Ashbery (b. 1927)
“But he [Bramhall] adds that we must subject them, according to that presentiality which they have in eternity, which he says cannot be done by them that conceive eternity to be an everlasting succession, but only by them that conceive it as an indivisible point. To which I answer, that as soon as I can conceive eternity to be an indivisible point, or anything be an everlasting succession, I will renounce all that I have written on this subject.”
—Thomas Hobbes (1579–1688)
“If love closes, the self contracts and hardens: the mind having nothing else to occupy its attention and give it that change and renewal it requires, busies itself more and more with self-feeling, which takes on narrow and disgusting forms, like avarice, arrogance and fatuity.”
—Charles Horton Cooley (1864–1929)