The following can only be a brief introduction of the legal subject concerned. Before you take any action which may have legal consequence, you should first seek advice from your own lawyer or make an appointment at any District Office to see a volunteer lawyer of the Free Legal Advice Scheme.




(507) SOME ADVICE ON MAKING A SIMPLE CONTRACT

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A contract is basically a set of promises two or more persons make to each other. The parties make a contract with the expectation that if one party does not fulfil his promises, the other party may apply to a court to enforce them.

As a general rule, most contracts do not need to be written down. A court can enforce even a purely oral contract. But from a practical point of view it is prudent for parties to write down their contract. The parties should decide exactly what they expect of each other and then record with similar certainty the terms of all the promises they have made. The written contract should then be signed by all the parties and they should each keep a copy of it.

Writing the contract down in this way will provide evidence which should help to prevent disputes over the terms of the agreement. If a dispute does arise the written terms will help the Court to decide what are the promises the parties agreed to fulfil. A written contract also helps to confirm that the parties intended to be legally bound by their agreement.

Very often one party will supply you with a standard form written contract which already contains all the terms. This limits your chance to negotiate terms and you should read and understand this document BEFORE you sign it. Once you have signed it, there is little chance for you to avoid legal liability.

Most adult persons can enter into legally enforceable contracts. However, sometimes the law will not enforce a contract against a person under 18 years, although the minor can enforce a contract against an adult party. If you make a contract with a person under 18 years you should consult a lawyer.

If you want information about contracts concerning credit or leases of property, please ask for the appropriate tape.

Remember it is prudent to seek legal advice before you enter into a contract.

Date of amendment: 1st October 1992