What is a contract?

Summary

Understand what makes a contract legally binding, and if verbal agreements, or those made over text or email are legally enforceable. This guide will also explain terms and conditions and statutory rights, and what you should do when a contract is broken. The information in this guide applies to England and Wales. 1 Getting started 2 How do I know if I have a contract? 3 How contracts get made 4 Who is my contract with? 5 What does my contract say? 6 Online and Distance selling 7 Ending a contract 8 Breach of contract 9 What does it mean? 10 About this guide We all make agreements with other people every day. However, not all of those agreements will be contracts. The difference between a casual agreement and a contract is that a contract is a legally binding agreement. This means: 1. You have the right to take the other person or company to court if they do not carry out their side of the deal (and they have the right to do the same to you). 2. You get the protection of certain terms and conditions which the law says must part of the contract. "When my boiler broke down, one of my friends from work put me in touch with her mate, Mike, who was a plumber. Mike popped round the next.

Key information

• How to deal with legal issues
• Sort out your legal problem before or instead of going to court
• if you lacked mental capacity.
• Ordering or booking over the Internet - if you make a contract over the phone or using the Internet, there are laws to protect you. You must be given clear and full information to help you make a decision about whether to buy and you usually get a ‘cooling off’ period. A cooling off period is a specified length of time when you can get out of the contract.
• Over the telephone - an agreement over the telephone can be a contract. It is as legally binding as a written contract. Any booking made on an automated telephone booking service will usually be a contract.
• Ordering something in a shop. Always check whether you will have to buy the item you have ordered, or if you will be free to change your mind.
• Online, the booking page may well have a link to standard terms and conditions - as long as they are mentioned on the booking page and are easily accessible they will be part of your contract.
• If you are buying from a catalogue, the small print is often separate from the booking form - you may find it elsewhere in the catalogue.
• The back of an order form.
• If you buy a ticket, check the back of it. There may be some terms and conditions printed on it, or it may refer to some that you can find elsewhere.
• 'Refunds given only for returns made within 14 days of purchase.'
• 'We cannot accept liability for any damage to your vehicle while parked in this car park.'

Practical guidance

• Source: What is a contract?

Related topics

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• Entire agreement clauses explained
• Making a claim on your insurance policy
• What is the Companies Act 2006?
• Addendum Vs Amendments To A Contract
• Are Verbal Agreements Legally Binding In The UK?