Can a verbal contract be binding???

This situation is occurring in Tennessee.....

To make a long story short...we entered into a verbal agreement to sublease a building for our business. Before the papers were signed, as part of the verbal agreement and in good faith that the agreement would be formalized later that day, we had the gas heat turned on for the current tenant. He has subsequently backed out of the deal. Now we are liable for the deposit and heat bills on a building that we are not allowed to use.

1. We believe that although our contract was verbal, our action in turning on the heat was effectively making the arrangement binding, and that we should get the building. Do we have any recourse as to breach of contract and the lost revenue due to the now delayed opening of our store?

2. How can we recover our expenses with the utility company and make this "gentleman" pay for the bills he has accrued under our name?

Thanks so much in advance for any advice!

[HomeGuru]

I do not quite follow your story.