Can an insurance broker renege on a proposed underwriting agency relationship after the negotiations with the underwriter are finalised but before a formal agreement is signed?
Entering into a business relationship with another party can be complicated; many issues need to be discussed and agreed to. The parties need to be free to negotiate without commitment until they reach substantial agreement. Once they do, they often engage lawyers to prepare a written contract, which they sign.
What is the position if one of the parties changes its mind before the lawyers agree to the terms of the written contract? Can that party rely on the absence of a signed contract to walk away? [Read more…]