• Whilst most commercial contracts do not have to be in writing (contracts for the purchase/sale of land and consumer credit transactions being exceptions) it is good practice for this to be the case. This is because you will create certainty by not having to reply upon verbal communications to prove what was agreed. Broadly speaking for a valid contract to exist essential elements must be present such as the intention to create legal relations along with a legal offer followed by an acceptance. Whilst in Scotland "consideration" is not an essential requirement to create legal relations (as it is in England) a gratuitous promise (such as a director unilaterally undertaking the obligations of his limited company) will have to be evidenced by written contract (See section on contract and personal guarantees).
  • Businesses often ensure their contractual terms are both in writing and have a uniform application by the preparation of standard terms and conditions of purchase. Whose terms and condition apply if following submission of your sale conditions you are met with you purchaser's conditions? This is sometimes known as "The Battle of the Forms"