Legal aspects of contractual formalities as determined by the parties and by the law

Abstract

A clear reason for the creation and inclusion of the contractual formality requirements in law is to protect the parties when they are concluding a legally binding instrument or contract. They protect the parties against any fraud, deception, hoax or embezzlement that may result from concluding an agreement. Contractual formalities are there to serve as a guide to the parties against any unforeseen circumstances that may lead to litigation. They serve to protect the parties upon concluding a legally binding contract and serve as proof if a dispute of facts arises from the contract. As a general rule, no contractual formalities are required to conclude a legally binding contract, provided all the requirements are met by the parties. Parties are at liberty to choose whether to conclude their contract with adherence to formality requirements or not; it is solely up to them to decide which form the requirements should take when they are concluding a contract.