3 DO CONTRACTS NEED TO BE IN WRITING

It is sometimes thought that you cannot have a contract if there is nothing in

writing; that there has to be a document, signed by both parties, with perhaps

other formalities as well.

But this is not always the case. Whether a contract needs to be in writing

depends on the system of law that applies to the parties’ transaction.

Sometimes, a legal system will require a written document; for example, in

contracts concerning the sale of land many legal systems require a written

contract. In other cases, the contract could be contained entirely in oral or

word-of-mouth exchanges, without the need for any writing. These contracts

could be just as binding as written ones.

It is true that in a construction project of any size you will normally have a

written contract; this will not only be written, but will typically be a very

detailed contract setting out the parties’ rights and liabilities. However, the

possibility of oral or non-written contracts should still be borne in mind. In

some systems of law, such contracts might even be found to exist alongside

written contracts in certain cases. Parties who wish to avoid uncertainty and

ensure that there are only written terms of their contract will need to obtain

legal assistance in drafting their agreements. It is also important to note that

in some legal systems you might have a contract which arises from a mixture

of oral agreements and agreements recorded in informal exchanges between

the parties, such as faxes, letters, e-mails or minutes of meetings.