Where parties' solicitors are negotiating subject to contract, conduct by the parties themselves in apparent performance of the anticipated agreement will not give rise to a binding contract unless the conduct is unequivocal — that is, unless no explanation can be given for it other than that the parties intended to contract. Conduct that is equally consistent with an interim arrangement pending conclusion of formal negotiations is equivocal and insufficient. Business people not uncommonly act upon an anticipated contractual relationship prior to the contract being formed, and the court will not readily infer a binding contract from such conduct where formal negotiations remain on foot.
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