In this case, there was a dispute over the amount of money owed under a construction contract. The defendant confirmed the amount due in a text message, but made no further payment to the plaintiff. The plaintiff sued the defendant in Small Claims Court for the remainder of the construction contract. The issue before the court was whether the claim fell within the statute of limitations. There is a provision in the Statute of Limitations, 2002 that states that the limitation period begins from the date on which an acknowledgment of the debt is made, when the person acknowledges liability and when the acknowledgement of receipt is in writing and signed by the person who does so: As more and more communications are exchanged via SMS, discovery in litigation and arbitration involves more and more text messages. Businesses should be aware that retention obligations extend to electronically stored information, including text messages. Steps should be taken to receive text messages related to the project to avoid possible evidentiary problems and possible investigative sanctions in the event of a dispute. Companies should have policies in place to address the use of mobile phones and the types of project communication that are discussed and shared via SMS. In addition, companies should set a retention policy to keep project-related text messages on private and company-owned mobile phones – B4 is 2 years behind! Part of the appeal of SMS is its speed and efficiency. Almost everyone has a mobile phone, and it is estimated that short message services such as SMS have a read rate of 98%, compared to the estimated 22% read rate for emails. SMS is a direct and fast means of communication that provides quick answers to urgent questions and an easy way to quickly disseminate information. On a construction site, SMS can be a useful tool to effectively coordinate work, deliveries and schedules, inform employees of changes or safety issues, and facilitate the immediate resolution of problems that have arisen that may otherwise delay work. Many construction companies take advantage of these benefits by enabling and even encouraging employees to communicate via SMS during their daily work on a project.
Some oral contracts are also enforceable. However, the evolution of technology adds to the confusion surrounding valid contracts. Many wonder whether agreements made via email or SMS are legally binding. The advice of an experienced business lawyer helps answer complex questions related to contracts and contract validity. In recent years, there have been other cases in various jurisdictions, including New York, Iowa, and Pennsylvania, reflecting this tendency to view text messages as evidence of the parties` agreements. With this in mind, companies need to be aware that despite obvious or perceived informality, text messaging can and will have legal implications. It is clear that a text message or a number of them can constitute a binding contract and can constitute a policy that could create certain rights or claims. On the one hand, text messages can help support or strengthen your position on a particular dispute or issue if there are no other simultaneous project files.
On the other hand, text messages sent by you or your employees might come back to follow you and prove work permits or instructions. For example, a criminal complaint was recently filed in a federal court in New Jersey against the owner of a construction company. The complaint alleged that during an OSHA affidavit as part of the investigation into two injuries at the site, the owner denied ordering the workers to perform repair work on a roof. However, OSHA later discovered that the text messages the owner had sent to workers on both occasions directed the execution of repairs on the roof. It is important to avoid accidental SMS contracts, which can become legally binding. The indication of the language “subject of the contract”, the same as in all e-mail communications, can clarify your intention. A text message can be a legal document under the ESIGN Act that gives electronically signed contracts the same weight as paper and ink contracts. In this way, acceptance methods such as electronic signatures, clickwrap agreements and text messages can act as unilateral contracts, provided that there is a clear method of consent (tick a box, SMS “I accept”, etc.) and an actual notification (link to a contract document in a text, on a payment screen, etc.). As mentioned above, the law does not specify what form of communication a contract must take. So, as long as all of the above are present in your text message or message chain, it is likely that they are legally enforceable as a contract. Small Claims Court stated that the confirmation was in writing and that, although the text messages were not signed, their authenticity was not disputed. Therefore, the applicant`s claim was within the statute of limitations.
A contract is a legally binding agreement between two or more parties to do something. When concluding a contract, all parties must undertake to fulfil their obligations in accordance with the terms of the contract. Execution failure is a violation. The aggrieved party may sue the distressed party to enforce the agreement or obtain financial damages. This article examines the applicability of SMS, DM, and instant messaging agreements. Although this area of law is still under development, some courts have concluded that agreements reached through these media are enforceable and have broadened the reasoning of cases involving electronic messages. This trend is likely to gain ground as these informal means of communication become more common in commercial transactions. While the wording of these statutes may suggest that the term “signed writing” refers only to a piece of parchment signed with quills, courts in the electronic age have adopted a more flexible definition of “signature.” In general, courts will consider whether a party has demonstrated an “intention to authenticate the message,” usually by affixing a typed signature. CUnet, LLC v Quad Partners, LLC (S.D.N.Y. 2017). And although some states have legally excluded text messages and instant messages from the definition of “signed fonts,” such as Cal.
Civ. Code. Article 1624 (d) The courts of other States have applied these agreements in their entirety. In the UK, to be a contract, a text message must include the following: On February 3, 2016, the broker of Two Electronics, LLC then sent a text message to buyers, SJH, saying that the owner is interested in selling, but first buyers must make the changes to the letter of intent, sign it and attach a check for the agreed amount.