The Court held that agreements which remain „subject“ to the subject matter of a formal contract may fall into one of three categories, namely: inconsistent language and conduct concerning preliminary hearings may lead the Court to find that you intended to be and be bound by the terms of the agreement, whereas you had no intention at that time. Preliminary agreements – often referred to as „heads of agreements“ or „memoranda of understanding“ – are often used to outline the parties` commercial intent to conclude the transaction and create an important framework for the terms of a proposed transaction. These documents can be considered legally binding, non-binding or partially legally binding.