The importance of a written agreement

As many businesses make contracts and deals on a regular basis, the need for a written agreement is often overlooked. By law, an oral agreement is sufficient however in the long run, a written agreement can save a lot of time, money and effort and is of particular importance in the case of a dispute.

The advantages of a written agreement summarised:

  • A legal document which specifies the ins and outs of the agreement can ensure there is a clear framework on matters discussed and agreed upon.
  • It helps to clearly identify parties to the transaction.
  • It is easy to get confused or forget dates and times that may be relevant during a business transaction, thus having it on paper can make things a lot easier.
  • The written agreement will provide each party with the Terms and Conditions of what was agreed.
  • A written agreement is more likely to be enforced in court in the case of a dispute.

It is also important to understand and be made aware of the elements that are required to make a contract binding and capable of being enforced by law.

The essential requirements of a contract are;

1) An offer made by one party.

2) An acceptance of that offer made by the other party.

3) Consideration.

4) An intention for the contract to be binding (as opposed to a domestic agreement made between friends).

By Murshida Khan a law student on work experience at Lawdit solicitors

If you’d like to know more about this article please send an email to Michael Coyle quoting the article title and any questions you might have, alternatively call the office number on 02380 235 979 or send an enquiry through our contact form.

share this Article

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

Recent Articles