Alice and Bruce Agree to Execute a Formal Contract Which Gives Effect to Each of the Terms Set Out Below. Alice Agrees to Acquire from Bruce, and Bruce Agrees to Grant, the Exclusive Right to Exploit the Licence That

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Whether or not B will have a cause of action for damages for breach of contract depends on whether the Heads of Agreement is itself an enforceable contract. Since A and B have executed the Heads of Agreement, they themselves may have come to an agreement, and execution excuses the need to go through an offer and acceptance analysis to find an agreement. Moreover, the language of the document reflects this conclusion; it records the completion of negotiations for the ‘Heads of Agreement’. Nevertheless, as a matter of law, the parties must have reached a certain and complete agreement R. Under the objective theory of contract; it cannot be concluded that the parties have reached an agreement if it is impossible to ascertain the meaning and legal effect of the terms agreed. Moreover, despite the execution of a document, there will be no enforceable agreement if the contents of that document evidence a positive intention not to contract. In this case, the determining factor will be the efficacy of the good faith provision. To reach and understand that point it is necessary to investigate some of the earlier provisions of the agreement. 
Clauses 1-3 of the agreement set out the basic obligations of the parties. The transaction involves the granting of rights to televise the Olympic Games. Such a transaction would ultimately require the settling of complex provisions under a formal contract. The parties have at most concluded an important part of their negotiations from which they intimate they will not go back on: they have agreed on a basic pricing structure and have agreed to negotiate exclusively with each other to finalise the deal, see Seppelt & Sons Ltd v Commissioner for Main Roads. Although that does not evidence a concluded contract to televise the games, it may be enough for B at this point if there is an effective agreement to continue to negotiate. That is,

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