Are Informal Agreements in DMs or Emails Enforceable in the U.S.?

Question from TJ, Are Informal Agreements in DMs or Emails Enforceable in the U.S.?

Answer from AI:

In the United States, the enforceability of informal agreements made through chat DMs or emails depends on several factors. Generally, contracts require offer, acceptance, and consideration, but not all need to be in writing. Here’s a breakdown of the key considerations:

1. Statute of Frauds: Certain contracts must be in writing to be enforceable, such as those involving real estate or those that cannot be completed within a year. If your agreement falls under this, a written form is necessary.

2. Uniform Commercial Code (UCC): Under UCC § 2-207, if both parties are merchants, an email or DM confirming an agreement can amend a contract if accepted.

3. Electronic Signatures: The Electronic Signatures in Global and National Commerce Act (ESIGN) validates electronic signatures, making them legally binding.

4. Mutual Agreement: Informal agreements must show clear mutual understanding and acceptance of the new terms. Courts examine whether both parties agreed to the changes.

5. Original Contract Terms: If the original contract specifies that amendments must be in writing and signed, even an email might not suffice unless it meets those terms.

To protect yourself, document any informal agreements formally. If unsure, especially in high-stakes situations, consulting a legal professional is advisable.

For more information, visit the Federal Trade Commission and the Cornell Law School for resources on contract law.