Contract or Not a contract?
If a document has ALL the elements of a contract, but states that "this is not a contract" is it or not?
Answers:
If both parties agreed that it was not a contract, then they obviously agreed that they did not intend to be bound to it, or create a legal obligation.
As such, a court will condsider it a gentleman's agreement, not a contract, and will not enforce any of its provisions.
It doesn't matter if they call it a roast beef sandwich, if it does have all elements of a contract (including signatures), it is a contract. Even if it would taste good with horseradish.
well I can tell you what I remember from contracts in law school. There must be an offer and acceptance, a meeting of the minds and it must be a written document or documents. I recall when I bought my first car...the documents were not a contract until the financing was complete and the lien registered. Said so right on the document that everyone signed. If I had not known that, I would have thought it was a final contract; done deal.
hope this helps
No. It is NOT a contract. Can't you read?
If it just says "this is not a contract", then it is doubtful. But if it says "parties agree not to be bound by this agreement" or "this agreement is a nonbinding memorandum" or something like that, then it is definitely not binding.
It IS a contract.
If the parties state that it is not a contract there is a serious deficiency, namely that this is a strong indication that they don't intend to be legally bound by the document. This is the same situation where the parties agree not to be legally enforce the contract. It is likely that a court would view the contract as "binding in honour only". There is no contract in the legal sense. See Rose & Frank Co v J R Crompton & Bros Ltd (an English Court of Appeal decision)
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