Small business owners and freelancers often operate on verbal agreements, believing "nothing was signed" means "nothing can be enforced." That belief can be expensive in a dispute, though proving what was actually agreed is exactly why written contracts exist — not because the law demands them, but because memories and interpretations differ.
Source: Alienation of Land Act 68 of 1981
Frequently Asked Questions
If a contract doesn't have to be written, why do businesses bother with written contracts at all?
Because proving the exact terms of a verbal agreement in a dispute is difficult and expensive — a written contract removes ambiguity before a disagreement starts.
What other agreements specifically must be in writing in South Africa?
Besides property sales and suretyships, examples include antenuptial contracts, long leases over 10 years, and certain credit agreements under the National Credit Act.
Can text messages or emails count as proof of a verbal agreement?
Yes — South African courts routinely accept WhatsApp messages and emails as evidence of what was agreed.