Frequently, potential clients and friends share with us their belief that a contract does not exist unless it is in writing, or the belief that one automatically has a right of cancellation on any contract entered into. Both are commonly held perceptions which are generally incorrect.

A legally binding "contract" is nothing more than the promise to do something, or sell something, by one party

in return for something of value from the other party. The thing of value given for the promise may be money, it may be services, or it may be something much more intangible; and lawyers often litigate the issue of whether adequate value was received for a promise, whether a promise was kept, whether the parties bargained fairly with each other, etc.

With rare exception, however, a contract does not have to be in writing. A contract can be formed by nothing more than a handshake, a verbal agreement, the nod of a head, or even one's silence when an act is performed on one's behalf or one receives something of value. In general, the only time a written contract is required is for those contracts: (1) which cannot be completed within one year (2) for the sale of real property, or (3) to pay the debts of another. Of course, most contracts are in writing, and for good reason: a writing is the best evidence a contract exists in the event a dispute arises over whether a contract has been entered into.