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Difference between revisions of "Making a Contract"
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In most cases, no. In fact, most of the everyday contracts we make, such as buying a ticket for a movie or going to the hairdresser, are not put in writing. If the elements of a contract are present, a verbal agreement is just as legal and binding as a written one. | In most cases, no. In fact, most of the everyday contracts we make, such as buying a ticket for a movie or going to the hairdresser, are not put in writing. If the elements of a contract are present, a verbal agreement is just as legal and binding as a written one. | ||
A contract is the agreement between people; a written document is usually just proof of the agreement. | A contract is the '''agreement''' between people; a written document is usually just '''proof''' of the agreement. | ||
However, some kinds of contracts '''must''' be in writing. For example: | However, some kinds of contracts '''must''' be in writing. For example: | ||
* When real estate is involved, all agreements must be in writing. An agreement to buy and sell a home must be in writing, and so must the mortgage that makes the purchase possible. | * When '''real estate''' is involved, all agreements must be in writing. An agreement to buy and sell a home must be in writing, and so must the mortgage that makes the purchase possible. | ||
* Contracts containing a guarantee must be in writing. A guarantee is an agreement where one party agrees to pay the debt of another person if that person defaults on the debt. | * Contracts containing a '''guarantee''' must be in writing. A guarantee is an agreement where one party agrees to pay the debt of another person if that person defaults on the debt. | ||
* A “distance sales contract” must be in writing. This kind of contract is one that is entered into not in person (for example, online or over the phone) and there is no opportunity to inspect what you are buying. | * A “distance sales contract” must be in writing. This kind of contract is one that is entered into not in person (for example, online or over the phone) and there is no opportunity to inspect what you are buying. | ||
* A door-to-door sales contract, known under the law as a “direct sales contract”, must be in writing. | * A door-to-door sales contract, known under the law as a “direct sales contract”, must be in writing. | ||
* A payday loan agreement must be in writing. Payday loans are small, short term loans - for $1,500 or less, that must be repaid within 62 days, when the borrower receives their paycheque or other income. | * A '''payday loan agreement''' must be in writing. Payday loans are small, short term loans - for $1,500 or less, that must be repaid within 62 days, when the borrower receives their paycheque or other income. | ||
=== Can a contract be made by email?=== | === Can a contract be made by email?=== | ||
