Does a Contract Need to be in Writing?

Does a Contract Need to be in Writing?

A contract is a legally binding agreement between parties which satisfies a number of requirements including that there be an acceptance by one party of an offer made by the other, that the parties intend the agreement to be legally binding and that some benefit called “consideration” is given by each party to the other.

A contract can be oral or in writing or a combination of the two. Some contracts, however, will not be legally binding unless they are in writing such as those for the sale and purchase of land or contracts for credit.

In addition to parties simply signing a contract document, a written contract can arise in the case of one party’s standard form business terms and conditions being adopted by the other party or by an exchange of e-mails.

And, of course, the entire terms of a contract may be constituted by and found in an exchange of e-mails between parties as well as conversations on the telephone before, during and after such an exchange.

Often, determining whether there is a contract in existence and what the actual terms of the contract are is no easy exercise and great care should be taken before jumping to any conclusions!