Topic

Contracts

Agreements that hold up: what has to be in writing, what makes a deal enforceable, and the clauses founders skip.

Contract law is the most misunderstood area this site covers, mostly because the folk version (“it doesn’t count unless it’s signed on paper”) is wrong in both directions. Most agreements are binding without any signature at all once offer, acceptance, consideration, and intention line up; and a signed document can still fail if a key clause is void. Contract law in Canada is largely common law (judge-made and similar across provinces), with statutes stepping in for specific areas like electronic signatures and consumer protection.

What actually makes an agreement binding

ElementPlain meaningWhere founders slip
Offer and acceptanceOne side proposes, the other agrees to those termsCounter-offers restart the clock; “we’ll sort details later” can undo agreement
ConsiderationEach side gives something of valueFree favours and unpaid changes to a deal can be unenforceable
IntentionBoth sides meant legal consequencesCasual texts can still qualify; family favours usually don’t
CertaintyThe essential terms are definedAn “agreement to agree” on price or scope often fails

Writing is usually about proof, not validity: a text thread that shows all four elements can bind, and a formal document missing one of them can fail.

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Mistakes that end up in demand letters

  1. Relying on “nothing was signed.” Conduct, emails, and part performance can all evidence a binding agreement.
  2. Skipping the essential terms. Price, scope, and timing left “to be agreed” are the classic seeds of an unenforceable deal, or an enforceable one you didn’t intend.
  3. Copying clauses across jurisdictions. Contract law travels well between provinces, but statutory overlays (consumer protection, employment standards, electronic commerce) do not.
  4. Treating an NDA as a magic shield. It binds the counterparty who signed it, on the terms it defines, and nothing more.

Official starting points

Guide last updated August 8, 2026.

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