What Is an Unwritten Contract

As a copy editor, it`s important for me to understand common legal terms that might appear in written content. One such term is “unwritten contract.” Let`s explore what exactly this term means.

An unwritten contract, as the name suggests, is a contract that is not documented in writing. Instead of being written down, these contracts are often formed through verbal or nonverbal communication between two parties. Unwritten contracts can also be formed through a series of actions or behaviors, rather than through explicit agreement.

It`s important to note that just because a contract isn`t written down doesn`t mean it`s not legally binding. In fact, unwritten contracts can be just as enforceable as written ones. However, proving the terms of an unwritten contract in court can be more difficult than proving a written contract. This is because there is no physical record of the agreement that both parties can refer to.

Unwritten contracts can come in many forms. For example, a handshake agreement between two business associates can be considered an unwritten contract. Additionally, when a customer pays for a service without signing a contract, that payment can be seen as an unwritten agreement between the customer and the service provider.

However, just because an agreement is unwritten doesn`t mean it can`t be disputed. The terms of an unwritten contract might be misunderstood or misremembered by one or both parties. In such a case, it`s important to try and reach a resolution through negotiation or mediation rather than going to court.

In conclusion, an unwritten contract is a legally binding agreement that exists between two parties, but is not documented in writing. These contracts can be formed through verbal or nonverbal communication, as well as through a series of actions or behaviors. While unwritten contracts can be just as enforceable as written ones, proving the terms of an unwritten contract in court can be more difficult. It`s important for both parties to fully understand and agree to the terms of any contract, whether it`s written or unwritten.