Jay and Mitchell were negotiating for Jay to purchase Mitchells valuable antique book collection. They both signed a document prepared by Mitchells sales agent which clearly identified the parties, time of exchange, price and property and contained a clause which stated:

This agreement is made subject to the preparation of a contract of sale which shall be acceptable to my solicitors on the above terms and conditions.

Two days after this document was signed, Mitchell had informed Jay that he had changed his mind and did not wish to sell the book collection. Jay insists they have a contract. Mitchell says they do not.

Who is correct? Give reasons for your answers.