Verbal or written contracts?

Contracts are agreements that are entered into between two or more parties either verbally or in writing. Even though, both verbal and written contracts are generally legally binding, most legal practitioners strongly urge contracting parties to reduce their verbal agreements to writing. Rather entering into written contracts has various advantages, namely that it:shaking-hands

  • ensures that both parties are fully aware of the contents of  their agreement,
  • creates transparency between the parties,
  • creates and maintains trust between parties and,
  • serves to avoid unnecessary disputes.

Nevertheless, the law dictates that certain types of contracts must be in writing, e.g contracts of sale of immovable property and antenuptial contracts.

signing-contract

Accordingly, it is very important that every person who intends to enter into a contract with another, whether such is e.g a lease agreement, contract of employment, fixed term service contract, contract of sale, loan agreement etc – consults with an attorney to draft or oversee and advise you of the legal aspects and implications associated therewith.

 

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