Subject to Contract Singapore
When negotiating a contract in Singapore, it is common to include the phrase ”subject to contract” in the agreement. This term implies that the parties involved have not yet finalized the terms of the contract and that the agreement is still in the negotiation phase. Typically, parties include this phrase in the agreement to express their intent to be legally bound only when they have agreed to all of the terms and signed on the dotted line.
In Singapore, it is essential to understand the meaning and implications of including the phrase ”subject to contract” in your agreement. Failure to do so can lead to potential misunderstandings or legal issues down the road. Below are some key considerations when using this term in your contract negotiations.
Negotiations Are Ongoing
When you include the phrase ”subject to contract” in your agreement, you are signaling to the other party that the negotiations are still ongoing. This line suggests that the parties have not yet reached a final agreement and that further discussions may be necessary. It is essential to keep this in mind when negotiating a contract to avoid any confusion or misunderstandings.
No Binding Agreement Until Signed
Including the phrase ”subject to contract” means that no binding agreement exists until the parties have signed the final contract. This means that either party can back out of the negotiations at any time without any legal consequence. It is important to remember that until the final contract has been signed, there is no legally binding agreement in place.
While using the phrase ”subject to contract” can be helpful in finalizing a negotiation, it does come with some potential risks. For example, if one party acts as if a binding agreement is already in place before the final contract is signed, they may be in breach of contract. It is important to ensure that all parties involved in the negotiations understand that no legally binding agreement exists until the final contract is signed.
Including the phrase ”subject to contract” in your agreement is a common practice in Singapore negotiations. It is essential to understand the implications and risks associated with this phrase to avoid any misunderstandings or legal issues down the road. Remember, until the final contract is signed, no legally binding agreement exists. Keep this in mind when negotiating your next contract in Singapore.