contractual loyalty

“Pacta sunt servanda” – or not?

Most people are accustomed to the principle that contracts are only legally binding if they are made in writing. However, with a few exceptions, the law does not stipulate a specific form for contracts, so oral contracts are just as valid as written agreements.

If the contract is based solely on verbal agreements, significant problems will arise during the court proceedings if the contracting party no longer remembers or does not want to remember the original contract. In court proceedings, the burden of proof falls on the person who claims a fact that is in their favour - for example, the existence of a claim. If such proof cannot be provided, the judge will have to dismiss the case. Work can quickly be commissioned from friends or "in passing" and the old phrase "friendship ends where money begins" once again proves its truth.

Important recommendations for clear agreements

It is therefore strongly recommended that you record all of your customers' orders in writing, especially if they are extensive and detailed. Requests for changes to the original order should also be recorded so that appropriate evidence is available in the event of a dispute. The presence of a witness is sufficient, although it should be noted that their evidential value is less than that of a document.

Avoid later difficulties and create transparency for both parties; your counterpart will certainly also appreciate clarity about the scope of work.