Do contracts need to be signed and delivered to be binding?
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Do contracts need to be signed and delivered to be binding?
Asked on February 4, 2011 under Business Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
A written contract does generally need to be executed, or signed, by the party against whom it is to be enforced'; there are some exceptions, whereby a party can show its acceptance of the agreement by actions rather than signature. For example, say that there was a proposed contract that A would sell B his car if B gave him a bank check or money order for $3,000. If B gives A the check, that would be acceptance of the offer and form the contract, even if nothing was signed (and even if the contract was purely oral or verbal). So the key thing is, there must be evidence that the contract was accepted by a party or parties, and that evidence is normally by signing but does not have to be. There is no inherent delivery requirement, unless either the contract itself specififies one or the nature of the contract and the circumstances make plain that one is required into order to demonstrate acceptance.
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