Contracts That Must Be In Writing

Must a contract be in writing all the time? In other words, is it compulsory that all contracts be in writing?

The answer to the questions above is a simple NO. Not all contracts are in writing. A contract can either be written or unwritten. A contract that is not fully in writing is what is called an oral contract. It can also be sometimes called an unwritten contract.

By definition, a contract is any agreement between two parties that is enforceable by the law courts. This means in order for an agreement to qualify as a contract it must be legally binding or valid.

Normally when we think of a contract, the first thing that comes to our minds is a document with the terms of agreement written clearly on it and signed by both parties. Well, while this is true for many contracts that people enter into, it is not all contracts that are like this. Many agreements that we enter into with people are not documented or written down and signed.

Once the agreement has all of the below essentials of a contract then it is considered a legally binding contract regardless of whether it is in writing or not.

The elements are:

There must be an agreement. In order words, there must be an offer and acceptance.
There must be an intention between the parties to create legal relations.
There must be consideration.
Both parties entering into the contract must have the capacity to contract. For example, you cannot enter into a contract with an insane person since the person does not have the capacity to contract.
The subject matter of the contract must not be something that is illegal or something that goes against the law.
Last but not least, there must be a genuine consent from both parties to the contract. This means both parties must enter into the contract out of their own free will. None of them should be forced or threatened into entering into the contract.

Once all of these essential elements are present in an agreement and the agreement is enforceable by the law courts, then whether the agreement is written or unwritten, it qualifies to be a valid contract.

NOTE: There are certain exceptions to this. But the bottom line is that not all contracts are written. And a contract does not necessarily need to be in writing to be enforceable.