Contracts are the agreements, which can be made either orally or in written statements. Written agreements serve as legal documents, which can be enforced in the court of law. In order to prevent disputes or fraud, certain contracts must be in writing, according to law specifications. Here are the 3 types of contracts that must be in writing, as per the law.
1. Real Estate Contracts
Contracts related to the purchase, transfer and sale of property or land should be in writing. This hard copy of the agreement helps in protecting the rights of both buyers and sellers. Real estate contracts involve a number of terms, figures and negotiations, which must be stated in detail. This is helpful to resolve any kinds of disputes, arising in future. Property lease agreements, which take more than a year to complete and property transfers, upon death, must also be specified in writing.
2. Contract for Marriage
If a prenuptial agreement is involved in a marriage, then it is required to be put in writing. When the couple decides to end their marital relationship, this contract proves to be helpful to make right claims. Prenuptial agreement is mostly used, to protect the ownership of one’s assets and property, in the event of marriage termination. If the agreement is not in writing, then it becomes extremely difficult for the court to make decisions, by weighing the claims made by both sides.
3. Contracts as a Guarantor
An agreement which specifies you as a guarantor of another person; who is required to pay the debt or to perform certain duties on behalf of some other individual, should be in writing. This agreement is required to ensure that, as a guarantor, you fulfill the obligations specified. An example of guarantor contract is co-signing for house loan. This contract is also helpful to prevent any false claims, from the other party, that you agreed to pay more than the stated amount. This agreement also protects the individual, on whose behalf you agreed to provide financing, in case you don’t fulfill your obligation.