Technology is rapidly taking over the way we communicate, research and continue with daily life. Many lawyers have been eagerly waiting to see how technology will come into play in the legal world and the interesting cases that it will bring.
A recent interesting case is that of Jaevee Homes Ltd v Fincham where the High Court ruled that despite no formal contract being written and signed, the parties involved had formed a valid legally binding contract through WhatsApp messages. This case stunned many with its reminder that informal and ordinary conversations can in fact form a legal contract. The case also highlights how the court follows and keeps up with the shift and reliance on technology in life.
This case raises many critical points regarding the formation of a contract and is a good example of the law being flexible and adaptable. There are an increasing number of small businesses and sole traders that use social media to form the basis of their business and consumer relationships. This case serves as a confirmation that those initial and continuing interactions on such sites, can validly serve as formation of a contract.
Further to this, it highlighted the importance of understanding when your contract has commenced. This case involved a debate as to whether a later signed contract served as the valid contract in the situation; ultimately the judge decided against this and gave effect to the informal contract formed within WhatsApp messages much earlier than the later signed contract.
As confirmed in the case, what forms a legal contract is an offer being made by one part and accepted by another, along with an exchange of value for the subject matter of the contract (known as consideration eg, money). Therefore, any platform that enables these elements to be exercised will form a legal contract.
Author: Latia Edwards, Legal Administrator/ Paralegal, Summerfield Browne Solicitors
DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances, and is merely a general comment on the relevant topic. If specific advice is required in connection with any of the matters covered in this article, speak to Summerfield Browne Solicitors direct.