A telephone agreement is a verbal agreement. A recording of the appeal does not change the form of the agreement. If you agree on something by phone call, it`s an oral agreement, right? What will happen if the other party has received this recorded call? (In Arkansas, it is legal to record phone calls if a party agrees.) A recording of an oral contract would therefore be useful in proving that there was an agreement, but would not change the fact that the contract is oral. The first case that appears to have sparked a discussion about text messages within the legal community is St. John`s Holdings, LLC v. Two Electronics, LLC.  In this case, the seller provided the buyer with an SMS confirming that a Memorandum of Understanding was acceptable and requested the buyer`s signature, but as soon as the buyer signed, the seller refused to execute the latest declaration of intent.  The Massachusetts Court held that “text messages and emails may comply with the Fraud Act, provided that, like other writings, they contain the essential terms of the transaction and are signed by the parties or their authorized agents.”  The St. John`s Holdings Court found that these conditions were met. The text message implicitly contained the Memorandum of Understanding and took into account all the essential terms of the contract.
The court then compared the text messages to the e-mail communication and found that the broker`s simple act, which inserted their first name at the end of the text message, was sufficient to qualify as a mandatory signature in these negotiations.  It states in that judgment that text messages may be considered legally enforceable as long as they meet the requirements for a bilateral offer, counterparty, capacity and acceptance contract. The Massachusetts Regional Court`s ruling also indicated that these contracts could replace the written contracts on paper and ink, imposed by the Fraud Act, which is enforced by many states. Home > Blog > Emails and SMS can also be a legally binding agreement! Since a real estate contract must be written under the law of state contracts, the importance of this decision would determine that the text messages are legally equivalent to bilateral treaties written on ink and paper. Conclusion: text messages are ideal for quick communication back and forth. However, if you want to make a text mandatory, specify the agreement in a text and ask the other person to respond, who validates the agreement and has their name on it. It would be even better to conclude the agreement by e-mail and to ensure that the necessary conditions and signatures are clear. Of course, it`s best to create a digitally signed document.
California Law: Statute of Frauds and Electronic Signatures Modern Fraud Act is generally a statutory provision that requires certain types of contracts to be recalled in writing and to meet other requirements that go beyond the basic contract requirements. In California, the Fraud Act includes contracts such as purchase or transfer contracts for real estate, leases longer than one year, larger commercial credits, and any contract that explicitly takes more than a year. It`s a good idea to make sure that you`ve articulated it clearly in a written document and that you keep it handy and that you`ve filed it as needed, because text messages don`t work as proof of your agreement.