Are Agreements Binding
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Often, pre-contractual documents provide a non-binding overview of the terms agreed in principle by the parties, allowing the parties to see how close they are to an agreement and provide a framework for future negotiations. However, pre-contractual documents can be used to set certain binding conditions, with confidentiality being a perfect example. For example, a statement of intent is often used by parties who wish to record certain preliminary discussions to ensure that they are both on the same side so far, but deliberately do not want to engage in a binding contract yet. The effect of these conditions is a matter of interpretation of the agreement of the parties. As such, it will in any event be a question of fact. Generally speaking, labeling the agreement as “contrasting” means that it cannot itself be a contract and therefore cannot be enforced. . . .
