<P> There is a prima facie presumption that this third category is evident where the phrase' subject to contract' has been utilised . Subsequent authorities have been willing to recognize a fourth category in addition to those stated in Masters v Cameron . </P> <Ol> <Li> The parties intend to immediately bound by the terms agreed upon and expect to create a further contract as a replacement for the initial contract which will contain additional terms (if agreed upon). </Li> </Ol> <Li> The parties intend to immediately bound by the terms agreed upon and expect to create a further contract as a replacement for the initial contract which will contain additional terms (if agreed upon). </Li> <P> Although the fourth category may seem similar to the first Masters v Cameron category, the distinction is the formal contract may differ in effect from the initial agreement . </P>

Occurs if a contract is entered into or a term becomes part of the contract