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One of the features of English Law is that most agreements don’t need to be in writing and, when it comes to disputes, the courts are more than willing to make decisions about exactly what was agreed and what went wrong even if there are no documents to support it.
Whenever someone reaches an agreement to do something in a business context, there will be a contract, even if it was something just discussed quickly on the phone. In these circumstances, it’s just that the contract will be oral and not written.
Problems usually occur when a dispute later arises. It is quite common for the parties to each have a different recollection of what was agreed and what went wrong.
Don't let the judge decide
If there is nothing in writing, it will often come down to a judge to decide on these issues. If it goes to court, the judge will hear what you have to say and what your opponent has to say and must then make a decision about who was right. Sometimes the judge’s decision will be easy, if it becomes obvious that someone was lying for example, but often it is not so clear-cut. The judge will just make a decision based on whom he prefers.
This means that, if there is nothing in writing, it comes down to your word against theirs. In reality, that means that your chances of winning the dispute could come down to just 50%.
Write it down
The best thing you can do is to ensure that, as far as possible, contracts are in writing. If a contract is in writing, it reduces the scope for argument considerably: the answer is usually there in black and white.
If this is not possible, you should at least ensure that you are trading in accordance with your written terms and conditions.
It is also advisable to confirm in writing what was agreed, a letter or email will do, and to do this as soon as possible after the agreement was reached. Although the contract will still be an oral one, the judge will look at your letter or email and is much more likely to find that this is what you had agreed.
It will also make a huge difference if, as soon as things start to go wrong, you record your version of events in writing (again in a letter or email) and send it to your opponent. When there later comes to be a dispute over what happened, your letter or email will be strong evidence of what actually went wrong.
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For more information on business contracts and handling disputes visit www.business-lawfirm.co.uk
or call Gary Cousins on
0121 778 3212. |
Improve the odds
So how does this ‘putting things in writing’ make a difference?
Say you had ensured that you had a written contract or, at least, one where you sent an email confirming what was agreed. Then, when things started to go wrong, you sent emails setting out your point of view. This could dramatically increase you chances of success from 50% to something approaching 80% or more (depending of course on all the circumstances).
But, perhaps even more importantly than this, the dispute will be much less likely to get to court in the first place, as your opponent will have far less scope for argument.
By getting things in writing, you would find yourself resolving disputes much more quickly and without having to expend large amounts of money and time in fighting your corner. |
