Deal or No Deal?

We might think of contracts as something formal: a document, a signature, maybe a lawyer. But an agreement doesn't always look that official. Sometimes, it looks like a few text messages.

A price is discussed. Details are worked out. One person agrees to the terms. Then the conversation ends, and everyone moves on. Later, something changes and suddenly there's a question: Was there actually a deal? Sometimes, a text exchange can help establish that there was.

Contracts generally don't require a particular format or a signature on every page. What matters is whether the communications show the basic elements of an agreement, including an offer, acceptance, consideration and an intent to be bound.

That doesn't mean every “Sounds good” creates a contract. Context matters. So do the details. If important terms are still being negotiated or the parties clearly intended to sign a formal agreement later, the situation may look very different.

The bigger issue is often figuring out what the parties actually agreed to. That's one reason informal arrangements can become complicated. A quick text may settle one detail while leaving several others unanswered. A conversation may make perfect sense to the people having it, but look much less clear months later.

The lesson isn't that every text needs to sound like it came from a lawyer. It's simply that the way we make agreements has changed, while the basic principles of contract law have not.

If you have questions about whether an informal exchange may have legal consequences, the attorneys of Wright Beamer can help you understand your options.