united-kingdom contract-law liability rental-property tenant
Can a tenant be held liable if they have shown intention to rent but pull out before signing a contract? (UK)
<p><strong>Scenario:</strong></p>

<ul>
<li>Alan advertises a room to rent in a joint tenancy property in which they are lead tenant</li>
<li>Zoe views the room and verbally expresses an interest in renting it</li>
<li>Alan passes on Zoe's contact details to the estate agent</li>
<li>The estate agent contacts Zoe by email, providing a draft contract and asking for further information in order to complete her details</li>
<li>Zoe provides the requested details, again by email</li>
<li>The contract is drawn up and the estate agents inform both Alan and Zoe that it is ready to be signed</li>
<li>A week later (having not yet signed), Zoe informs the estate agent that she no longer wants to take the room</li>
</ul>

<hr>

<p><strong>Question:</strong></p>

<p>In UK law, is it possible that the email correspondence between Zoe and the estate agent would provide strong enough evidence of intention for Zoe to be held liable for costs incurred by Alan and/or the landlord of the property as a result of her late withdrawal?</p>

<p>So far I have found guidance which states that a verbal agreement is rarely considered binding with respect to tenancy agreements, but no clear information about written agreement prior to signing or liability in such a circumstance.</p>

<h2>No</h2>

<p>The tenant is liable if they break a contract: there is no contract here. One of the tests for a contract is that there is an offer that if accepted will create a clear, unambiguous contract. Looking at the enumerated facts:</p>

<ul>
<li>Alan advertises a room to rent in a joint tenancy property in which they are lead tenant - <strong>not an offer, this is an invitation to treat</strong></li>
<li>Zoe views the room and verbally expresses an interest in renting it - <strong>not an offer, this is the opening of negotiations</strong></li>
<li>Alan passes on Zoe's contact details to the estate agent - <strong>not an offer, this is communication between one party and their agent</strong></li>
<li>The estate agent contacts Zoe by email, providing a draft contract and asking for further information in order to complete her details - <strong>not an offer, the contract is a "draft"</strong></li>
<li>Zoe provides the requested details, again by email - <strong>not an offer, just a transfer of information</strong></li>
<li>The contract is drawn up and the estate agents inform both Alan and Zoe that it is ready to be signed - <strong>this is <em>an</em> offer</strong></li>
<li>A week later (having not yet signed), Zoe informs the estate agent that she no longer wants to take the room - <strong>... that was <em>not</em> accepted</strong></li>
</ul>

<p>Further, the tenant is liable if they are <a href="https://en.wikipedia.org/wiki/Estoppel#Promissory_estoppel" rel="noreferrer">promissory estopped</a> - they have  withdrawn a promise made to a second party if the latter has reasonably relied on that promise. Zoe has made no promises other than one to negotiate - she has negotiated. </p>
