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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100025
Experience:  Lawyer
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I was given a proposal business to business service under

Customer Question

I was given a proposal for a business to business service under a license agreement. I accepted the terms with one exception, which was agreed to in writing via email. Now the supplier has rescinded the offer and has accused me of promoting our relationship without a signed agreement, even though I was presented with promotional material to distribute. Was I in the wrong?
Submitted: 2 years ago.
Category: Canada Law
Expert:  Debra replied 2 years ago.
Are you saying you asked for one term to be varied and this was agreed upon?
Customer: replied 2 years ago.
Yes. It was a change in the price structure that shared the risk more evenly between us. His justification for withdrawing the proposal, after having agreed to this in an email, was that he didn't feel like he would make enough money when in fact, if everything went well and we reached our targets, he would make more.I guess my question is if I have any grounds to insist on going forward on his proposal. I've put development of my similar projects on hold in anticipation of this coming together. While I don't ultimately think I will be working with them after this stunt, he stated "every business knows that there is no agreement until it is signed". Is this entirely accurate or is there some grounds for an agreement to be in place if it is all agreed to in writing in anticipation of signing. Be good for me to know this moving forward :)
Expert:  Debra replied 2 years ago.
The law is that when there is an offer and an acceptance there is a binding contract. So he accepted your offer in the email when you proposed one change. When he accepted it the offer then became a binding contract. He cannot change his mind. He is already bound by the agreement. There is on time that one party can unilaterally change the terms of a contract so he cannot back out unless you agree and you can sue him to compel him to adhere to the terms of the contract and/or for damages.

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