A contract is formed once a party, who intends to create legal relations accepts an offer for the provision of some form of goods, services or other form of consideration. What does that mean?
Put simply, if Joe offers me a phone for £100 and I accept the offer, and agree to pay that amount notwithstanding the fact that no one has signed a document, a contract is still formed.
Whether or not that contract is valid, enforceable or revocable all depends on what was said between Joe and I when we made the agreement. For example, if Joe had told me that the phone he was selling could take videos and it could not, then that would be a misrepresentation. It would mean that the contract would be at risk of rescission; the transaction could be undone. If I had suffered a loss because of a misrepresentation, I would also be entitled to Damages to compensate for the loss.
The need for a contract to be written simply limits any ambiguity on what was discussed and will allow either party, should the other renege on the agreement, to enforce the terms more easily and often more cost effectively through litigation.
Do you think someone is in breach of a contract? Or are you simply unsure about whether your agreement is enforceable? Give Griffin law a call on 01732 525923 or email email@example.com, we can help.