How contracts get made

But I have not got anything in writing!

It is a common mistake to think you have not got a contract because you have nothing in writing. In fact most contracts do not have to be in writing and many are not.  As long as you have a clear agreement and the basic ingredients for a contract are there, you have a contract whether it is in writing or not.

Having said that, it is always a good idea to get something in writing if you can - it helps to show what has been agreed if there is a dispute later. If you have nothing in writing it often ends up being one person's word against another.

If you are an employee, you have a contract of employment whether or not it is put into writing. You have a right to ask your employer to put down the main terms of your contract in writing if this has not been done already.

However, some agreements like leases, contract to buy property, and consumer credit agreements must be in writing. 

Sometimes it is obvious when a contract is made - like when you sign a lease or an employment contract. But it is not always so clear. We enter into contracts all the time without even thinking about it. There are some situations where you can, unknowingly, get stuck with a contract that you do not really want.

Common situations where you may make a contract without realising are:

  • Ordering or booking over the internet - if you make a contract over the phone or using the Internet, there are laws to protect you. You must be given clear and full information to help you make a decision about whether to buy and you usually get a 'cooling off' period. A cooling off period is a specified length of time when you can get out of the contract. 
  • Over the telephone - An agreement over the telephone can be a contract - it is as legally binding as a written contract.
  • Telephone booking service - Any booking made on an automated telephone booking service will usually be a contract.
  • Ordering something in a shop - Always check whether you will have to buy the item you have ordered, or if you will be free to change your mind.
  • The internet - Ordering or booking over the internet.

Solving real-life examples

‘My neighbour's son is fitting some new windows for us but it's all very informal and we haven't been given anything to sign. Will we have any rights if things go wrong?’

As long as you have a clear agreement with the fitter - including how much you are paying - then you will have a contract even if you have nothing in writing. You should think about writing down what has been agreed in a letter - including the price, a description of the work and the date you have agreed it should be done by - and giving it to the fitter. (keep your own copy). This will help avoid any argument about what was agreed further down the line. If you pay cash you should ask for a receipt, even if this is handwritten.

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