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An agreement does not need to be in a proper contract: in principle, there are no formal requirements, so even an agreement on a beer mat is valid. The condition is that it is clear who the parties are and what they are agreeing to. The problem lies not in the validity, but in the proof.
In principle, agreements are not subject to any formal requirements
An agreement is formed through offer and acceptance, and in principle, there is no prescribed form for this. An agreement can therefore be legally valid orally, by email, or on a piece of scrap paper or a beer mat, as long as there is a meeting of minds and it is clear who is agreeing to what with whom. A signature is usually not required for validity, although it does serve as proof.
The real problem: proof
Validity is one thing, proof another. If a dispute arises later, you must be able to demonstrate what was agreed upon. A beer mat or a verbal agreement is difficult to prove: what exactly was written, and with whom? Therefore, it is wise to record important agreements in writing and clearly.
Note the exceptions
For certain agreements, however, a formal requirement does apply. For instance, the purchase of a home by a consumer must be in writing, and specific formal requirements apply to certain clauses (such as a non-compete clause) and legal acts (such as a gift or transfer of copyright). In those cases, a beer coaster is therefore not sufficient.
Document important agreements properly
If you want to be sure of your case, record: who the parties are, what the agreement entails, the price, and the conditions — and refer to your general terms and conditions. A proper order confirmation or contract requires little effort and prevents a lot of disputes.
Frequently Asked Questions
Is a verbal or informal agreement valid?
In principle, yes: agreements are not subject to any formal requirements. The main problem is proving what was agreed upon.
Do I need a signature?
Usually not for validity, but a signature helps as proof. However, a formal requirement applies to some exceptions.
When is written notice required?
Including in the purchase of a home by a consumer and in certain stipulations and legal acts such as a gift.
Want to definitively document your agreements?
Our legal experts draft contracts and general terms and conditions . View our contract lawteam or schedule a free consultation.
