I didn't think I had a binding agreement! How to determine when a binding agreement exists

Key Points:

A key question in determining whether a binding agreement exists is whether the parties have shown an objective intention to be bound.

Lawyers and commercial managers in a highly competitive market are often faced with immense pressure to get things moving on a project, leaving minimal time for negotiation of the terms of agreement between the parties. This situation can often lead to disputes as to whether a binding agreement has formed and, if so, the terms of the agreement.

This article outlines some general principles to assist in identifying whether a contract is binding and identifies some potential extra-contractual claims that may be available where a binding agreement has not been formed.