Formalities in UK IT Contracts - Signatures Not Always Necessary

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In today’s fast-paced world, particularly in the IT field, parties may not always realise when they have entered into a binding contract. The advent of e-mail and Internet-based commercial relationships has only made the problem of the “inadvertent” contract more common.

The problem is highlighted in a recent decision of the UK High Court, which shows that a signature on a piece of paper is not always required for a contract – or a contract variation – to come into existence. Contracts can arise where the parties reach agreement in correspondence and / or start performing the terms of the contract.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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