Not in writing? It may still be binding
Updated: 23 hours ago
“We never put it in writing, so there’s no binding contract” is a common (but often mistaken) assumption. A verbal agreement can often be just as legally binding as a written one.
Generally, most ordinary contracts require an offer, acceptance, an intention to create legal relations, and consideration (i.e. something given or promised in exchange). The format alone doesn’t normally determine its legal status. If the specified requirements are met, an agreement reached over a call, in a meeting or even over dinner or coffee may well be enforceable.
The main practical problem with verbal agreements is often not whether they are binding, but proving what was agreed. Without a written record, a dispute may come down to one person’s word against the other’s. Key terms such as price, timing and what was promised can be difficult to establish, although witnesses, messages, contemporaneous notes, subsequent conduct or other evidence may help.
There are also situations where the law requires particular formalities, such as writing. For example, contracts for the sale or other disposition of an interest in land generally need to be in writing and signed by the parties. However, these are exceptions rather than the rule.
Where no particular legal formalities apply, a short written record, even an email confirming what was agreed, can save a great deal of trouble. However, assuming that there is no legally binding contract simply because it’s not in writing is dangerous.
If you have questions or concerns about anything you agreed or were promised verbally and the legal status of such an agreement, Via Legalis can help you work out where you stand.
The content published in this blog provides high-level legal information and insights only. It is necessarily general in nature and does not constitute legal advice, nor should it be relied upon as such. The law and regulatory position reflected in the content may change, and we do not undertake to keep blog content updated. Always obtain legal advice by reference to the specific facts and circumstances of your particular matter.