Is it necessary to sign a written agreement?
The conclusion of contracts in written form is not a general rule, they can also be concluded verbally, however, practice has shown us that the conclusion of contracts in written form is preferable to the verbal agreement for several reasons, as mentioned below. Of course, there are situations where by law it is mandatory to conclude the contract in written form or the written form of the contract must be authenticated by a notary public.
Is concluding contracts in verbal form (gentlemen’s agreement) a way to establish a contractual relationship?
Of course, verbal agreements are a form of establishing a contractual relationship. In fact, it is the primary way to agree with another person a benefit in order to receive a consideration in return, regardless of what is the object of this primary exchange between two or even more people who understand to oblige each other. The law defines the contract as the simple agreement between the parties.
However, verbal agreements have disadvantages compared to written contracts:
a) over time people’s memory may fade, and the details of the agreement may be forgotten or wrongly recalled within the agreement so that dissensions arise between the parties;
b) people’s good faith is not always preserved during the execution of the obligations they committed to;
c) verbal agreements that have a pecuniary value greater than 250 lei cannot be proven with witnesses;
d) verbal agreements are not allowed in certain situations where the law requires the conclusion of the contract in written or even authentic form.
How safe are the contracts concluded in written form?
The safety of a written contract is determined by two factors: the content of the contract and the form of the contract.
The content of the contract must include as many details as possible about the agreement between the two parties, after negotiation. The more complete the details, the greater the force of a written contract. Also, the clarity with which a contract is drawn up is very important. Clauses that are insufficiently detailed or unclear may lead to erroneous interpretations or to the difficulty of proving in court the intention of the parties, if a litigious situation is reached between the parties.
Therefore, a contract that contains as many of the essential details of the parties’ understanding as possible and whose clarity is at least sufficient, has a high probative force.
The form of the contract is another element that establishes a hierarchy in terms of the degree of security it confers regarding the observance of the rights and obligations born from the understanding of the parties. Thus, in reverse order of the degree of security, we have the verbal agreements, the contracts written under private signature and the contracts written in authentic form.
How can Contracts be proven?
When two parties reach a disagreement regarding the terms of the agreement between them, it is possible that the disagreement will be settled in court. In this case, it will be necessary for the court to establish, as close as possible to the truth, what was the intention of the parties and under what conditions they wanted to enter into the contractual relationship. That is why the parties will have to bring various evidence to support their point of view on the agreement. These samples can be:
• Written contracts
• inscriptions signed by hand
• electronically signed entries, if the signature complies with the conditions of the special law
• letters
• e-mails
• faxes
• notes made on the side of an inscription
• proof of payment made as a result of assuming an obligation
• witnesses
• registers
The more written evidence there is and the more clearly these are written, the more chances that a party will prove its claims are greater.
The Legality Team will be at your disposal and can offer you the necessary support for the conclusion of contracts designed and drafted for the best legal protection, having extensive experience in this regard. The experience we have turns us into reliable partners, with a broad vision of the dynamics of a contract, an essential quality for the interests of our clients to be protected in the best possible way.