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Contracts - Are you bound by a clause you did not read? |
If you sign a written contract then you are generally bound by all of its terms even if you did not read or understand them. |
There are various types of contracts which you may come across in everyday life which do not require your signature, for example a parking ticket or a dry-cleaning docket which has clauses printed on the back. |
The general rule is that you are bound by the clauses if you have read them or if you knew they were there but did not bother to read them, or if the other person took reasonable steps to draw them to your attention. |
It is therefore extremely important to read all the terms of a contract before you enter into it. You should not sign any document until you are fully aware of its terms and conditions and what they mean. |
Does a contract have to be in writing? |
In general, contracts do not have to be in writing, but there are particular cases when the contract must be in writing for it to be binding, for example guarantees, the sale of a house, and credit sales or other credit agreements. |
However, it is usually better to have the details of an agreement and any variation in writing so both parties have a record of what has been agreed and are aware of what they're obliged to do, particularly when money is involved. |
Paul Clark |
paul.clark@cmlawyers.com.au |
