Who decides the terms of a contract?
Generally, the terms of a contract are for the parties to decide. However, the law may “imply”
terms into the contract. An example of an implied term is that food sold by a hawker is fit for
human consumption.
COMMERCIAL LAW
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Does a contract have to be in writing?
Generally, contracts do not have to be in writing. A contract can be made in writing (as is usual
in commercial transactions) or it can be verbal (such as ordering food from at a hawker centre).
Are you bound by a clause you did not read?
If you sign a written contract, then generally you are bound by all of its terms even if you did
not read or understand them.
There are various types of contracts which you may come across in everyday life which do
not require your signature, for example, a car park ticket or a dry-cleaning docket which has
clauses printed on the back. Generally, the rule is that you are bound by the clauses if you
have read them or if you knew they were there but did not bother to read them, or if the other
person took reasonable steps to draw them to your attention.
It is important that you read all the terms of a contract before you enter into it, and you should
not sign any document until you are fully aware of what its terms and conditions are and what
they mean.