Video chapters
Quick answer
A binding contract usually requires a sufficiently certain agreement, intention to create legal relations, consideration and parties with capacity, plus any formalities the law requires. It can be oral, written, electronic or inferred from conduct. The exact communications and terms matter more than the document's title.
What to do
- Collect — Preserve every version, message, signature and payment
- Trace — Identify the offer, acceptance and agreed terms
- Test — Check intention, consideration, capacity and form
- Assess — Review illegality, unfair terms and available remedies
Transcript
Australian agreements can be formed by signing, words, email, clicking acceptance, payment or conduct. Start with the complete sequence: proposal, changes, acceptance and performance. A draft, quote or heads of agreement may or may not be binding depending on its language and context.
Identify the final offer and an acceptance that matched it. Ask if both sides objectively intended legal consequences. Confirm an exchange of value and make sure the essential terms are certain. Capacity, authority and genuine consent also matter, especially for companies, minors or people under impairment.
Many contracts do not require a signature, but legislation can require writing, execution, disclosure or cooling-off rights for particular dealings. Electronic signatures can be effective. Check the governing law, entire-agreement, variation and subject-to-contract clauses before relying on an informal exchange.
Misrepresentation, misleading conduct, duress, unconscionable conduct, illegality and unfair standard-form terms can affect enforcement. Consumer guarantees continue despite contrary wording. If breach occurred, quantify loss, consider termination rules and preserve evidence that you tried to reduce avoidable damage.
A contract lawyer can identify formation, terms, defences, limitation periods and practical remedies. Go To Court can provide free general information and arrange a civil or commercial-law consultation where a suitable lawyer is available. The contact details are on your screen.
Sources and further help
Sources checked 3 September 2026.
Important
This video provides general information about contract formation and civil remedies in Australia. It is not legal advice and does not take account of your circumstances. Laws, procedures, fees and time limits can change, and state or territory rules may apply. Get advice from a qualified lawyer about your situation.