subject to contract

Meaning

This phrase is used in legal and business negotiations to indicate that the terms being discussed are not legally binding until a formal, written contract is drafted and signed by both parties. It protects businesses from accidentally entering into a binding agreement during preliminary talks.

Examples

• Please find attached our heads of terms, which remain subject to contract.

  Please find attached our heads of terms, which remain subject to contract.

• All discussions during this meeting are subject to contract and do not constitute a formal offer.

  All discussions during this meeting are subject to contract and do not constitute a formal offer.

• We have reached an agreement in principle, subject to contract, to acquire the competitor.

  We have reached an agreement in principle, subject to contract, to acquire the competitor.

• The draft proposal is strictly subject to contract and confidential.

  The draft proposal is strictly subject to contract and confidential.

• Until we sign the final paperwork, everything we agree on today is subject to contract.

  Until we sign the final paperwork, everything we agree on today is subject to contract.

Common Mistakes

• ✗ We signed a subject to contract yesterday.

  ✓ We reached an agreement, subject to contract, yesterday.

  'Subject to contract' is an adjective phrase, not a noun. You cannot 'sign' a subject to contract; you sign a contract.

• ✗ The deal is subject of contract.

  ✓ The deal is subject to contract.

  The correct preposition is 'to', not 'of'.

Related Expressions

Practice

• Our initial agreement is ___ and will only become legally binding next week.

  💡 It means the terms are not yet legally binding.

  Show answer

  subject to contract

• Please note that this email offer is strictly ___.

  💡 Use the phrase to protect your email negotiations.

  Show answer

  subject to contract