Written contracts are the express types of contract which is written or printed on paper and follows the basics of a contract. It works like documentary evidence in a legal agreement done between two parties. Although both oral and written contracts can be enforceable by law, the Witten contracts have more value than others. In today’s life, we use to make contracts for the long term and short term. The written contracts are more important in the contract which will last for more than a year. In this article, we will discuss how to make a written contract and the conditions for a written contract.
What is a written contract?
Written contracts are printed, typed or legal written agreements that are enforceable by law. The written contract is done between parties who has the capacity to contract. The basics or written contracts comes into existence at the time of the formation of a contract. Written contracts come under the type of express contracts. The written contracts follow the essential elements of a valid contract.
Written contracts contain all the terms and conditions of the valid contract which are necessary for the performance of the parties to the contract.
Written contract example
A made contract with B by writing the conditions and dates on the paper that He will sell his property to B for $50000. B accepts the conditions of the contract by signing the contract.
E-contracts are also examples of written contracts.
What is the need for written contracts?
Both oral and written contracts are enforceable by law. But in many cases, the State laws require that the contract must be written. The main reason behind the written contract is that it plays the most important role when a breach of contract occurs and the aggrieved party needs to submit the conditions of the contract in writing. There are many benefits of written contracts:
- It is the main evidence of the contract
- The plaint (lawsuit)can be filed with the help of a written contract
- A written agreement helps the party to remember the required conditions for the contract
- It helps the parties to read the term and conditions whenever they need.
- It is important to make the contract written if you want to make the contract confidential
- Parties can use the remedies for breach of contract that is written in the contract at the time of the formation of the contract.
What matter should be included in the written contracts?
How to make a written contract? Written contracts provide more certainty in all types of contracts under business law. These contracts contain the detail in writing which includes:
Material facts of the contract
In this point, it contains:
- The names, addresses and necessary details of the parties to the contract
- Conditions of the contract
- Detailed procedure to do the work to fulfil the contract
- And all other material facts of the contract
Time and date
- The exact time of the formation of the contract,
- Deadline to fulfil the contractual work
- Time and date for the payment
- Any other important date and time for the contract
This clause contains information about the payment or consideration of the contract that how and when the payment will be done.
The process to follow at the time of the dispute
The contract can be breached while fulfilling its requirements. The parties, at the time of writing the contract, can add the process for solutions if the breach occurs in the contract. Parties can add the remedies for breach of contract.
Statute limitations on the written contracts
Every state has their own rules and laws to govern the contract. These statutes provide the limitation on the written contract. You can check the limitation on written contracts in your state by just google it with the name of your state.
Types of contract which requires the written contract
There are many conditions for the contract which make the contract important for both parties. When such conditions meet in a contract, the contract must be in writing. The contracts which need to be in writing are:
Sale of property
If a person wants to buy or sell the property, the contract must be in writing. All the contract of sale of property must be in writing as it shows the ownership of the person.
Sale of goods with the value of over a certain amount
If a person is selling or purchasing goods that contain the cost of more than a certain amount of money should be in writing. The amount varies from state to state.
Contract of surety
You have heard about the life insurance that assure you to give the money to your family if you die with natural death. This is the contract of surety.
The bank guarantee and contract of indemnity are examples of the contract of surety. If you are the surety of a person who took the loan from the bank and now, the person is unable to pay. The surety come in the shoe of that person to pay the debt. Such types of contracts must be in writing.
Contract longer than one year
Any contract which will take more than one year to be completed should be a written contract.
The contract that will last longer than life
Any contract which will be in working till the death of the parties of the contract must be written.
These are some types of contracts that must be written.
Is a written contract legally binding?
Yes, the written contracts are bind both the parties of the contract in a legal relationship. The written contract is also a form of contract which fulfil all the essentials of the contract to become enforceable by law.
Written contracts are important for the enforcement of the contract. It is the evidence for the lawsuit. The aggrieved party can take the help of a written contract to prove that the defendant party has entered into the contract with their free consent.