What is the test for establishing a binding contract where the parties intended not to be bound until the execution of the contract?
MultiRegion, United States of America
The following excerpt is from Fort Vancouver Broadcasting Corp. v. Fouce Amusement Enterprises, 933 F.2d 1013 (9th Cir. 1991):
2 The fact that the parties contemplated a future writing is not necessarily dispositive. The absence of a writing will preclude formation of a binding contract where the parties intended not to be bound until the execution of the writing. See Higgins v. Bonnett, 282 Or. 725, 728, 580 P.2d 180, 181 (1978).
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