In the case of a tenancy agreement, a written contract is highly recommended, as it contains details on important conditions such as the amount of monthly rent, the notice period required as well as the condition of the property and the maintenance requirements of both landlords and tenants. It is customary for disputes to arise as to the responsibility to manage certain expenses and commitments. A written lease simply resigns the absence of error and clearly defines the details on which all parties can refer when needed. For the sale of real estate, a written contract is a legal obligation under the Land Disposal Act (68 of 1981). It is not difficult to understand why this requirement exists for such high-quality transactions. An offer to purchase representing the sales contract signed by the buyer and seller contains all the information ranging from the sale price and the date of the crew to the fittings and devices that are part of the sale, as well as certain conditions that must be met for the sale to be valid. Well-developed agreements should contain useful information and explanatory guidance on the agreement. In the event that a dispute may indeed take place, this useful information and explanations will serve as the basis for legal representatives to question the question of a fair solution. It is important that many written agreements can only be amended if the amendments are approved in writing and signed by all parties. In short, although oral agreements are generally legally binding, they are not recommended.
Not understanding the fundamental principles of contract law can have protracted consequences, which is why it is so important to know that written contracts tend to offer far more guarantees than oral agreements. In addition, the complexity of contract law makes professional guidance necessary before a reasonable contractual relationship is concluded. With some specific exceptions (listed below), an oral agreement can constitute a binding legal contract. However, all the conditions described above – offer, acceptance, consideration, two or more competent parties and a legitimate purpose – must be met. A contract is an agreement between two parties, which must be applicable by law.