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.
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