# can you explain "subject to contract/contract denied" ?



## 4th estate

This phrase puzzles me. What does it mean?, It seems contradictory.

Thanks.


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## Vanilla

It's a form of protection used to deny the existance of a contract made by correspondence which might otherwise contain the elements of a contract.


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## 4th estate

Vanilla,
many thanks for your quick reply, but sadly, I must be a muppet, but I still don't understand!

Are you saying that the phrase protects an agreement until the proper contract is signed, and excludes others purporting to be so? 

Ah the law, the law!


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## Vanilla

There are basic elements such as a description of property, parties, price and so on which if put in correspondence could mean that the correspondence itself could form a contract. So to avoid that each letter is usually headed 'Subject to Contract/Contract Denied'. 

Subject to contract- we are writing to you about stuff which is only relevant if and when a contract is signed.

Contract denied- we deny there is any binding contract as yet.


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## 4th estate

Excellent!

Very well explained now, thank you very much.


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