Contracts are a fundamental part of conducting business both online and offline. They are legally binding agreements that outline the terms and conditions of an agreement between two or more parties. Contracts can be oral or written, but for some, they must be in writing to be enforceable.
In this article, we will explore the types of contracts that must be in writing to be enforceable and why it is important to have them in writing.
Real Estate Contracts
Real estate contracts are agreements that outline the terms and conditions of a sale or lease of real property. These contracts must be in writing to be enforceable, according to the Statute of Frauds. This is because real estate is a valuable asset, and it is important to have the terms of the agreement in writing to avoid misunderstandings or mistakes.
Employment Contracts
Employment contracts are agreements between an employer and an employee. These contracts outline the terms and conditions of employment, including salary, job duties, and benefits. They must be in writing to be enforceable, especially if they contain non-compete or non-disclosure clauses. This is to protect the employer`s interests and prevent the employee from sharing confidential information or working for a competitor.
Sale of Goods Contracts
Sale of goods contracts are agreements between a buyer and a seller for the purchase of goods. These contracts must be in writing if the value of the goods exceeds a certain amount, according to the Uniform Commercial Code. This is to ensure that both parties are aware of the terms and conditions of the sale, including the price, quantity, and delivery requirements.
Promissory Notes
Promissory notes are written promises to pay a specified amount of money at a certain time in the future. They are used in financial transactions, such as loans or mortgages. Promissory notes must be in writing to be enforceable, according to the Statute of Frauds. This is to ensure that both parties are aware of the terms and conditions of the loan and can hold each other accountable if necessary.
Why Writing Matters
Having contracts in writing is important for several reasons. Firstly, it helps to prevent misunderstandings or mistakes. When the terms of the agreement are in writing, both parties can refer to them if there is a dispute or disagreement. Additionally, having contracts in writing provides clarity and ensures that both parties are aware of their obligations and responsibilities.
In conclusion, some types of contracts must be in writing to be enforceable. Real estate contracts, employment contracts, sale of goods contracts, and promissory notes must be in writing to protect the interests of both parties and prevent misunderstandings or mistakes. It is important to have contracts in writing to ensure clarity and accountability. As a business owner, it is essential to be aware of these requirements to avoid legal ramifications and ensure a successful transaction.