facebookCan an informal letter written and signed by both parties be a legally binding document? - Seedly

Yang Teng

18 Apr 2019

Insurance

Can an informal letter written and signed by both parties be a legally binding document?

Discussion (1)

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Yes, if it fulfils some aspects in the test of law.

Take note of 3 basic points that makes a contract. (For details, have to learn the Contract law)

  1. There must be an offer and acceptance. Eg. A wants to give B something, B accepts it.
  1. There must be a consideration involved. Something of value has to be exchanged. Eg. Exchange of money for goods or service rendered.
  1. Intention. Both parties must have showed that they have the intention to be bound by the agreement. The court will look at environmental factors surrounding the circumstances to determine. Eg, if u were playing a game, part of acting would not be a good circumstance to proof intention XD.

Typically if something of value has been exchanged (consideration given), it is presumed both parties had the intention to go into contract.

Even verbal promise is legal binding. Just the burden of proof and enforceability, how strong it is under the test of law.

So for your letter, was there clear offer-acceptance? Was there consideration given? What was the circumstances that brought u into this agreement (Is it business)?

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