Not only is it a good idea to have a business contract in writing, but many times, it is a legal necessity. Without a written document that details and memorializes your rights, you could financially be at risk.
How the Statute of Frauds Works
To be clear, some oral contracts are enforceable, but you should never really take that chance. There is a governing legal requirement called the Statute of Frauds. It has nothing to do with actual frauds. Instead, it says that there must be a written agreement to prove a contract over a certain dollar amount. In business, you never really want to take a chance on the person that you are transacting with, and you want writing to protect you.
Types of Contracts that Need to Be in Writing
Here are some contracts that need to be in writing to be enforceable:
- Agreements for real estate transactions
- Contracts that last for over a year
- Real estate leases for more than a year
- An agreement to pay someone else’s debt obligations
- Contracts that survive past the life of one of the signatories
Really, writing is the best way to show a record of what the two parties each agreed to do. Without it, each person could say that they remember things differently, and the dispute could end up in court. If you do not have the protection of a written contract, you could end up losing a lot of time and money.
Contact an Atlanta Business Transaction Lawyer
You may need to prove that you had a contract when it was not put down in writing. If you find yourself in a contractual dispute, contact an Atlanta business transaction attorney at Battleson Law PC online or call us at 470.398.1175 to schedule an initial consultation to discuss your case.