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29th September
written by Tellus

A non-binding contract is an agreement in which the parties are not legally required to perform their terms. Its purpose is to explain the intention of the parties in the negotiation process. If both parties agree to the terms of the non-binding contract, they can then sign a binding contract. There are also other situations where a contract may be non-binding. Declarations of intent should contain a language in which they are not expressly non-binding. If you write such a letter, be sure to place the words “non-binding” in the first paragraph. If it is sent by email, make sure that “non-binding” is also in the subject line. Also add a statement that neither party will be required to sign a binding contract unless they are fully satisfied with the agreement. .

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