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In simple terms, contracts in Australia are agreements between two or more parties based on the acceptance of an offer. However, for a contract to be legally enforceable, a number of elements must be satisfied.

  1. There must have been a clear offer from one party (‘offeror’).
  2. The other party (‘offeree’) must have accepted the offer.
  3. Consideration must have been paid between the offeror and the offeree.
  4. There must be evidence of a mutual intention from all parties for the agreement to be legally enforceable.
  5. The terms constituting the agreement must be certain.
  6. Each party must have had sufficient capacity to enter the contractual agreement.

In addition to these basic requirements, certain types of contract, such as those involving any dealing with land, or contracts for employment, must meet other more specific requirements.

 

Can Oral Contract be Enforceable?

If you and another party have made a legally binding oral contract, that agreement will be enforceable. However, you may find it difficult to enforce your oral contract in practice.

In order to establish the existence of an oral contract you must prove that there was a legal relationship between yourself and the other party. Whilst this may be difficult to prove, providing both oral and written evidence will assist in proving the existence of the oral contract.

  • Oral evidence from others who support your testimony may assist you in proving an enforceable contract
  • Witnesses to the agreement may be able to provide evidence which is usually set out in an affidavit.
  • Correspondence between you and the other party via email or letter may assist in proving the existence of a binding agreement
    • This correspondence can be in the form of an email, letter or even text messages.
  • Documents including invoices, receipts, bank statements or purchase orders indicating an exchange of money between both parties is also useful in proving an oral contract.

 

If you are unsure whether your contract is enforceable or if you would like to find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an interview.

Alternatively, you can book an online consultation with us via this link: https://straits-lawyers.square.site/product/online-consultation-/11?cs=true

 

 

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.