Which Contract Must Be in Writing and Signed

Contracts are an integral part of conducting business, whether it`s between two parties or many. They are legally binding documents that outline the terms and conditions agreed upon by the parties involved. But not all contracts need to be in writing and signed to become valid. In this article, we will discuss which contracts must be in writing and signed.

Firstly, it`s essential to understand that some contracts can be oral or implied. Oral contracts are agreements made through spoken communication between two parties, while implied contracts are inferred from the actions of the parties involved. However, these contracts are difficult to enforce as they are not documented. Therefore, it`s recommended to have all contracts in writing and signed to prevent any disputes that may arise down the line.

The following types of contracts must be in writing and signed:

1. Real Estate Transactions

Any agreement involving the sale, purchase, or lease of real estate must be in writing and signed. This includes contracts for the purchase of a house, rental agreements, lease contracts, and even mortgages.

2. Employment Contracts

Employment contracts between an employer and an employee must be in writing and signed. This includes contracts outlining the terms of employment, such as salary, benefits, and job responsibilities.

3. Loans and Credit Agreements

Any loan or credit agreement, including personal and business loans, must be in writing and signed by both parties.

4. Sales of Goods Valued over $500

Any agreement for the sale of goods with a value exceeding $500 must be in writing and signed. This includes contracts for the sale of vehicles, equipment, and other valuable assets.

5. Contracts that cannot be completed within one year

Any agreement that cannot be completed within one year must be in writing and signed. This includes contracts for ongoing projects or services that will span over a year.

6. Contracts involving Intellectual Property

Contracts involving the transfer or use of intellectual property rights must be in writing and signed. This includes contracts for the licensing of patents, copyrights, and trademarks.

In conclusion, it`s essential to have all the necessary contracts in writing and signed for validity and enforceability. The contracts that must be in writing and signed include real estate transactions, employment contracts, loans and credit agreements, sales of goods valued over $500, contracts that cannot be completed within one year, and contracts involving intellectual property. It`s always recommended to seek legal advice when drafting contracts to ensure that they meet all legal requirements and adequately protect your interests.