Parties have not Signed a Written Contract. Is the Transaction Valid?

2020/1/8

It depends on the specific situation.

If the law requires a written contract to be signed, the transaction is invalid if no written contract is signed, such as a housing contract, a construction contract, etc. If the law does not require a written contract, an oral agreement is also valid, such as a furniture purchase contract, a fabric purchase contract, etc.

Moreover, the two parties have not signed a written contract, but one party has fulfilled the main obligations of the contract and the other party has accepted the contract, and the transaction does not violate laws, regulations and social order, nor does it damage the legitimate rights and interests of the third party. Such contract is established and becomes effective when the conditions for its entry into force are met. For example, the parties have not signed a formal written contract, but there are quotations, invoices, remittance records, communication records, etc. In such cases, it should be deemed that a valid contract has been formed between the parties.