Can a Contract Be Made Orally Under English Law?
Yes. A contract can be made orally under English Law. However, under English law, certain contracts must be in writing: for example, contracts of guarantee, contracts to sell land, and consumer credit agreements.
There are some popular examples of oral contracts:
Buying goods in a shop
A customer asks to buy an item, the seller agrees, and the customer pays the price.Ordering food or drinks
A customer orally orders food in a restaurant and agrees to pay for it.Hiring a taxi
By entering a taxi and stating the destination, the passenger agrees to pay the fare. This is also an example of a contract that may be partly oral and partly implied by conduct.Hiring a tradesperson
A homeowner may orally agree that a plumber, electrician or decorator will perform work for an agreed price.Hairdressing and beauty services
A client requests a haircut or another treatment, and the hairdresser agrees to provide it in return for payment.Private sale of personal property
Two people may orally agree on the sale of a bicycle, phone, furniture or another personal item.Some employment agreements
An employer and worker may make an oral employment agreement. A valid oral agreement is not automatically less legally binding than a written one, although proving its precise terms may be more difficult.Casual service agreements
A person may orally agree to provide cleaning, gardening, tutoring or repair services in return for payment.
Under English law, a contract does not generally need to be written and signed to be legally binding. Oral contracts can be valid when the necessary elements of contract formation are present. Nevertheless, legal validity and practical proof are not the same thing. A person may have a valid oral agreement but still experience difficulty proving its precise terms.
This article provides general information about the law of England and Wales. It does not constitute legal advice.
