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Transfer Issue
I was bidding on a player, it came to negotiations, I tried offering him a contract but it kept saying I must submit a bid for the player , which I obviously had already done, the player is no longer showing in the bids page so I assume the manager withdrew him, however this morning I get a message saying the player has accepted the terms offered even though he isn't available anymore and I could offer him anything.

I think I've just worked it out, the manager I was buying from has just bought one of my players and I believe the game doesn't allow teams to buy/sell to one another in the same season.

I just experienced this today.... wasn't aware of this!

Wish I had bought the player first instead of sell...

This sounds like a combination of two things.

First, from what you said, the selling manager just bought a player from you. But because that transfer completed after you had already placed your bid but before you reached negotiations, the player was still showing on your transfer bid list.
So then it would not allow you to negotiate because of the restriction that you can't buy / sell between two clubs, in the other direction, for 56 days after the first transfer. (Not same season, but 56 days).

Second, then the player signed for you anyway, I think because you were the only bidder (or possibly top bidder and others did not negotiate either).

The second part seems to be the same bug that I experienced once where a player can join your club even when your squad is at maximum because there is only one bid.

I pulled out from a transfer this morning as I wasnt happy with the duration and my transfer rating has dropped from 10 to 7, seems a bit excessive in my opinion.

I've seen this myself.

I'm not sure that the rating is absolute, so a 10 could be a 9.6 and the 7 could be a 7.4. However, I always thought it was a -1 effect when you pull out. But I've noticed that it's more severe than that. (same reasons as you).

That said, transfer rating is not something I've spent much time monitoring, so it could well be that I just never noticed it before.

I wouldn't worry much, there aren't enough players for people to be excluding managers with 7 ratings! Personally I don't exclude anyone and it looks like most people set it at -8 ish with a few set at 0.