If a contractor or subcontractor starts a project based on the requirements or demands of an unsigned contract, it is possible that a court will see that contract as official, even with the lack of signatures. Even when the contract clearly defines that signatures are necessary to make it binding, if the work is started or completed, there is a high chance the contract was “signed” by virtue of work performance alone.
If two parties have a discussion regarding work and compensation for that work, it might be seen as an oral contract, especially if that work is consequently started. Evidence of such discussions will further validate the presence of an oral contract having formed. Whenever you talk about work with contractors or subcontractors, you may want to record the audio – after notifying all parties present about the recording in progress – in case you have to argue for the existence of an oral contract later.
There is no legal requirement for a commercial contract to be in writing – it is still enforceable if it isn’t written down. However, it’s advisable to have the contract in writing so that all parties are clear on their rights and responsibilities. In addition, it is simpler to prove or disprove, and to resolve any dispute, if the commercial contract is in writing.
Yes. The law distinguishes between agreements made in a commercial context, that is: with the intention to create legal relations, and those which are social and domestic in nature, without that intention. This way, agreements between family and friends are kept away from the courts, except when they relate to a contractual business issue. In this context, if a contract is written, the law presumes that the parties intended to create legal relations and that it is a commercial contract which the parties intend to be enforceable through the courts.
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