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.
  • Â 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)Â Â Â An offer made by one party.

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

3)Â Â Â Consideration.

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

Â

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

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