Commercial Contracts

The term “Subject to contract” is often used where parties may have finalised the details for a contract but may wish to record it in a formal document. This frequently occurs with the sale of land but is not necessarily restricted to real property transactions. Are the parties bound immediately by their initial agreement (which may be oral or may be in writing or both) or should they only be bound when a formal agreement is executed (which may be in writing)?
Prepare a case analysis of Masters v Cameron, together with any variation to it from Baulkham Private Hospital Pty Ltd v GR Securities Pty Ltd. Your analysis should set out in clear terms the ratio decidendi and conclusions from each case and explain what the current law is on the term, “subject to contract”.