The answer is yes.
Sanjay Soni explains why it is important to be aware that when agreeing to a written contract, it does not need to be signed by both parties to be legally binding. In many cases there is no need for a written document to be prepared and/or signed in order for there to be a “contract”.
An example of this was the case between Reveille Independent LLC and Anotech International (UK) Ltd, which highlights that even if a contract says it has to be signed to be binding, if it is unsigned, it may still have a legally binding effect. The key issue in this case stemmed from one party not signing the contract. This party argued that by not signing, they had not accepted the terms of the contract. However, the Judge in the Commercial Court ruled that, regardless of signatures, the contract was still binding as the contract was binding through the conduct of the parties.
Whilst it makes sense to ensure a contract is signed by both parties before work is carried out, in reality this may not be possible. For example, if the goods or services under the contract is urgent. This case helps clarify some of the issues arising if a contract is unsigned. However, certain contracts such as those relating to the transfer of land can only be effective if in writing and signed by both parties.
Commercial contracts containing properly drafted terms and conditions are the bedrock of any successful business. Clarity is vital in commercial contract wording and the descriptions of terms on which goods and services are to be supplied and received.
As business owners, you will have a variety of contractual relationships with employees, contractors, suppliers, customers/clients and other third parties. It’s important to make sure your contract terms are specifically written for your business, so avoid the temptation to copy someone else’s terms, as their business is different and may not be suitable in your case. If you don’t specify terms and conditions, you put yourself at risk of uncertainty and misunderstandings – it’s vital to establish the actual arrangement between the two parties involved in any deal.
How we can help
Our commercial contract solicitors can draft, advise, and negotiate on a range of commercial contracts for the provision of goods and services and make sure that your business is protected by written agreements tailored to your needs and that protect your interests and assets.
We are very aware of the budget limitations of small businesses and factor that into our quote, including an initial free consultation to advise you on the best steps forward.
Contact Sanjay Soni s.soni@thpsolicitors.co.uk or Malcolm Head m.head@thpsolicitors.co.uk or call 01491 570 909 to see how we can help with your commercial business needs.