The 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 to be signed, an oral agreement is also valid, such as a furniture purchase contract, a fabric purchase contract, etc. 

In addition, 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, and the transaction does not violate laws, regulations and social order, nor does it damage the legitimate rights and interests of the third party. The contract is established, and it takes effect when it meets the conditions for entry into force. 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.