As you probably know, I am a corporate/financing/business lawyer by specialisation. In other words, all things contracts make me happy J Today on The Answers Blog we will be discussing whether all contracts should be written and if not, whether verbally made contracts are really binding.

If you reside in a country that applies common law, then you may be familiar with English contract law. If you reside in a country that applies Civil law, then please skip reading this article-you get a pass. Reason is civil law countries strictly apply the relevant code in the day-to-day application of the law. First things first-let’s distinguish common law from civil law. Common law simply refers to a legal system in which judicial legal opinions (“judge-made” laws) are given importance in the day-to-day application of the law. Civil law systems, on the other hand, refer to those where the codified statute or Act of Parliament takes precedence in the day-to day application of the law. This article looks at oral contracts from a common law perspective.

That being said, under English common law, a contract may be written or oral. Short answer, the general rule is that an oral contract is legal as long as the elements on validity of a contract are satisfied. Please click here to access a summary on the elements of a contract.

Like every general rule, there are exceptions. These exceptions may vary depending on the modifications in legislation that have been made in your specific country. In Kenya for example, these exceptions are outlined under section 3 of the Law of Contract Act, Cap 23 Laws of Kenya which requires certain types of contracts to be in writing in the event that a party may wish to resort to the courts of law for recourse. These include: a contract for the disposition of an interest in land, contracts relating to debt, financing, purchase of goods and guarantees.

In case you are curious about contracts and getting all the legal bases for your business covered in One Simplified Affordable Actionable Step without the pain of hiring a lawyer for 100 different things you need, please click here to access my timeless BLB Framework.