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Slapping the label of ‘legal’ on any old document does not constitute legally valid material. For a document to be considered legal – for instance, a contract – it must meet specific criteria. As outlined below, the law mandates a precise standard for recognising a signed document as legally enforceable.
What Is A Contract?
A contract is a signed legal document that establishes the binding promise between two or more parties in exchange for something of value. In 2025, it remains essential that a contract is drafted and executed in accordance with the current legal standards. Typically, a contract will contain the following elements:
- Offer and Acceptance – there must be a clear proposal from one party, and an unequivocal acceptance from the other, to form the foundation of the agreement.
- Intention – all parties must knowingly and willingly intend to be legally bound. It is imperative that no one is misled or coerced into agreeing.
- Consideration – each party must receive something of value, whether it be a good, service, or profit, ensuring mutual benefit within the contract.
- Capacity – the parties entering the contract must have the legal and mental capacity to understand the terms. For example, individuals under the age of 18 or those with significant mental impairments typically lack the capacity to consent to such agreements.
| Example When drafting an Employment Contract, an employer must ensure that all these elements are satisfied. For instance, the document should clearly outline: – The offer of employment – The employee’s capacity and willingness to accept the offer – The agreed-upon salary (consideration) |
Ways You Can ‘Accept’ A Contract
Most formal agreements are accepted by a signature. While the traditional method of putting ink to paper remains in use, the digital era of 2025 offers highly secure and efficient alternatives. Electronic signatures are now widely accepted, ensuring that parties can seal the deal without physical documents.
At Sprintlaw, we offer a robust E-Signature tool designed to meet our clients’ evolving needs. Our custom-built platform allows you to sign and send legal documents electronically, keeping all your important paperwork securely stored in one centralised location. For more on secure e-signature practices, check out our guidance on online contracting.
You can access this service as part of your Sprintlaw Membership.
| Example Dave is a florist and receives a text from Dan enquiring about a floral arrangement. Dave replies affirmatively. Dan then confirms, “Great, I’ll take the floral arrangement and be there to pick it up at 7:30am for £85 on Wednesday.” In this scenario, Dan’s confirmation constitutes acceptance, forming a legally binding contract—even though the agreement is reached informally. If either party fails to uphold their end of the agreement, the same legal consequences apply as with a formally signed contract. |
What About Verbal Agreements?
Verbal agreements are also legally binding. Even in the absence of written documentation, a verbal contract must contain the same essential elements – namely offer and acceptance, intention, consideration, and capacity – to be enforceable.
However, proving the existence and specific terms of a verbal agreement can be challenging. As a precaution, it is always wise to secure important promises in writing.
Is A Written Agreement Legally Binding?
Generally speaking, a written agreement will be legally binding if it fulfils all the elements of a contract as outlined above. In 2025, the importance of a documented, signed agreement continues to be paramount.
It should also be properly signed to come into effect. To ensure your contracts are airtight, consider reviewing your documentation with our contract review service, which helps guarantee compliance with current legal standards.
Despite this, various factors may render a written contract void or unenforceable – let’s explore these factors below.
When Is A Contract Void Or Unenforceable?
A contract may be deemed void or unenforceable for several reasons, particularly if the terms are illegal or if improper methods were used in its formation.
The following circumstances can render a contract unenforceable:
- When the contract is based on prohibited or illegal activities, or includes clauses that fail to comply with current legislation.
- If one or more parties lacked the capacity to sign – for example, individuals under 18 or those with significant mental impairments.
- If the contract was executed under duress, meaning that one party was coerced or forced into agreeing through external pressure.
| Example Consider the case of Ali, who, due to a cognitive impairment, is not fully capable of managing their substantial inherited assets. A relative, eyeing Ali’s wealth, drafts a contract transferring all of Ali’s assets to themselves and then pressures Ali into signing by applying physical force. In this scenario, not only does Ali lack the necessary capacity to enter into the contract independently, but the agreement was also obtained under duress and without any real consideration. Consequently, such a contract would be deemed illegal and unenforceable. |
If in doubt, our contract review service can help ensure that your agreements are both legally sound and fully compliant with the latest 2025 standards.
It is also worth noting that the court will assess whether a contract is unenforceable on a case-by-case basis, weighing the specific circumstances surrounding its formation.
Can A Legal Document Be Terminated?
Yes, signing a legal document does not bind you indefinitely. Many contracts include termination clauses – or you may terminate the agreement using a Deed Of Termination.
For example, employment contracts typically stipulate a notice period (commonly four weeks) for resignation. Provided that the notice terms are fully observed, an employee may terminate their contract in accordance with the agreed conditions.
Alternatively, a contract may be terminated if one party breaches its clauses, or through termination by frustration. Termination by frustration occurs when an external event – outside the control of either party – makes it impossible or impractical to fulfil the contractual terms. Such events are often covered under force majeure clauses, so it is important to review these carefully.
Key Takeaways
There are several critical factors to consider when drafting a legal document. Every contract must include the basic elements of offer and acceptance, intention, consideration, and capacity. Furthermore, it must comply with any specific legislative requirements pertinent to its context, such as employment law for work-related agreements.
Seeking professional legal assistance when drafting your agreements is always a wise choice to ensure full compliance with 2025 legal standards.
If you would like a consultation on your options going forward, you can reach us at 08081347754 or [email protected] for a free, no-obligation chat.
Looking ahead to 2025, digital innovation continues to reshape the way contracts are formed and executed. The rise of smart contracts—self-executing agreements encoded on secure blockchain platforms—enhances security and efficiency while adhering to traditional legal principles. As these technologies mature, it is more important than ever to have your agreements reviewed by experts. To stay informed about these trends and protect your business interests, consider exploring our resource on digital business law.
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