The unconditional acceptance of a tender gives rise to a contract1. An acceptance is effective when communicated to the tenderer2. Where the parties are otherwise agreed on the terms of the contract but acceptance is made subject to a condition that a formal document should be executed, it is a question of construction whether such a condition is a condition precedent which prevents a concluded contract from arising3. The use of the term 'subject to contract' is a strong indication that no enforceable obligation was intended to arise before the execution of a formal document4; but a statement in
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