What is an implication of stating something is "subject to contract"?

Stating that something is "subject to contract" indicates that the discussions or negotiations between parties are ongoing and that no binding agreement has yet been reached. This phrase suggests that while discussions may be taking place and terms are being considered, any formal agreement or contract is still pending. Thus, the parties involved have not committed to the terms in a legally binding way.

This concept is important in commercial contracting, as it allows parties to negotiate terms without the risk of being legally obligated until a formal contract is executed. It reflects a clear intention that the final terms are still under consideration, and changes can be made before any contract is finalized.