Contracts and Agreements: The basis and form taken whether written or agreed orally

Categories: Contracts

Mark Reed
March 23, 2023

I get calls frequently from clients or new enquiries stating that a third party has reneged on an agreement. First thing I ask is whether the agreement was in writing and what were the terms of the agreement.

Contracts and Agreements: The Ultimate Guide 2023 — © Pexels

Defining the Contracts and Agreements

It has become clear that individuals and those entering into a B2B agreement have different ideas of what constitutes an agreement or contract. It is accepted that contracts can take different forms, but to ensure the terms of the agreement are clear and accepted by both parties, a written contract should be made. This will ensure that each party can provide specific detail of what is agreed but also what they expect should the agreement be reneged by the other party.

Examples of Contracts and Agreements

Examples are employment contracts, service agreements or sale of goods contracts and settlement agreements. Each of these will contain different terms and expectations, obligations, and detail of the agreement but in essence, all will have the following:

Names and address of the parties
Definition of terms.
Description of what is agreed to form the basis of the contract.
Any cost agreed or costs agreed if it is a payment plan with dates. It could be salary which is agreed or one of payment for goods.
What to do if there is a fault with goods, or what if the service is not provided in accordance with what was agreed.
How to deal with a dispute whether it be arbitration or tribunal or silent to allow for court proceedings to commence once pre action protocol has been exhausted.
Any exclusion clauses which must be considered.
Any jurisdiction which is relevant and which laws apply (I have had contract disputes where it has been in the UK, but the contract was agreed with a French company and the jurisdiction to deal with a dispute and the applicable law was in France).

It is also important that once a draft has been provided by one party to the other that the contract/agreement is considered, and independent legal advice is sought before signing. Usually, one party is asked to tick a box to agree they have taken legal advice or wish to waive this need. This then protects the other party should a dispute arise.

Are Oral Contracts and Agreements Legally Binding?

In terms of the format itself, although it is not advisable to make an oral agreement without the terms being written down, it is not to say that this means the agreement is not binding. There are many other aspects to consider though so do get in touch and provide details and we can then advise further on that. It may also be that an agreement has been made by letter, email or even in some circumstances, text/WhatsApp.

The issues will then arise when a dispute happens and both parties are silent on what should happen. It will then be down to the advisors to consider any implied terms which are relevant, and if not agreeable, then judge or advocate can explore then best way to navigate a resolution in light of the silent parts of the contract/agreement.

To Conclude on contracts and agreements

If you are experiencing difficulties related to contracts and agreements and in settling a dispute or if you are needing advice on the best course of action and the appropriate way to deal with it in line with the terms of a contract then give me a call and discuss, or email with background and any evidence to review ahead of a call or meeting (no charge to have a chat so do not hesitate to get in touch).

Written By Mark Reed – Solicitor & Director

References for this article on contracts and agreements

Here are the references we used for this article. Please browse them below.

B2B (TechTarget.COM)
Agreement or contract (Lawdit.CO.UK)
France (Wikipedia.ORG)
UK (Wikipedia.ORG)

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Written By:

Mark Reed

Mark heads up our Isle of Wight office while also spending time in our Southampton and London offices to meet clients. Mark specialises in Civil Litigation; Commercial Disputes; Family Law; Defamation and Harassment; Construction Disputes; E-Commerce; Intellectual Property; Music Law; and can also assist with Mergers and Acquisitions. Mark holds a LPC LLM from The University of Law in Guildford Mark has an excellent track record for retaining clients and has also acted for several high-net-worth individuals. He is known for his professionalism, transparency and is considered approachable and always on the other end of the phone – and even gives clients his direct mobile number so they can reach him anytime (within reason). Mark occasionally accepts pro-bono cases and has had good results on behalf of his clients outside court and during court. As a confident public speaker, Mark has held presentations to university students and given talks to scholars on different areas of law. Mark has a wife and three children and lives on the Isle of Wight.