Do contracts need signing before they are legally binding?
Not all contracts need to be signed before they are legally binding. Claire Alden, Partner in Pannone’s Commercial team looks at two cases, each with a different outcome, and how a party’s actions can affect whether a contract has come into existence. A party must agree to the terms of a contract in order for it to become legally binding. Although this is usually done by the signature of those with authority to enter into the agreement, it is commonly recognised that parties can enter into a contract by a course of dealing, signifying their acceptance of the terms of the contract. In January 2009, the High Court in Grant v Bragg considered whether a contract was formed by two parties agreeing to the terms of the draft contract via e-mail. The Court considered it was enough for Mr Grant to have e-mailed Mr Bragg, accepting the contract’s terms previously e-mailed to him by Mr Bragg’s lawyer, and that it did not matter that neither party had actually signed the contract. The Court acknow