b. False
A preliminary agreement can indeed constitute a binding contract in certain circumstances. While preliminary agreements, such as letters of intent or memorandums of understanding, are often considered non-binding as they outline the intentions to negotiate or explore the possibility of a future contract, they can still be binding if they meet the essential elements of a contract.
For a preliminary agreement to be binding, it must typically include elements such as offer, acceptance, consideration, and an intention to create legal relations. If these elements are present, even in a preliminary agreement, it can be enforceable as a binding contract. However, it's worth noting that the specific details and context of the agreement, as well as applicable laws, can influence whether a preliminary agreement is binding or non-binding.