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If a chain of text messages includes necessary contractual language, the text messages are legally binding. It's important to avoid inadvertent text message contracts that may become legally binding. Including the language subject to contract, the same as in all email communications, may clarify your intent.

Even emails and text messaging can constitute a legally binding agreement!In fact, this document was never drafted (never mind signed), but the court confirmed that the parties intended to be bound by the terms which they informally negotiated and agreed in the emails.

A text message can be a legal document under the ESIGN Act, which gives contracts signed electronically the same weight as paper and ink contracts.As long as these conditions are met, text messages and other forms of electronic communication are considered legally enforceable contracts in court.

Verbal agreements and oral contracts are generally valid and legally binding as long as they are reasonable, equitable, conscionable, and made in good faith.Contracts that are clearly written and executed are easier to present as evidence in court than the testimony of the contractual parties.

The law in NSW allows for an electronic contract. So, a text message may in principle amount to a contract. The law allows for an electronic signature and there is case law that merely typing your name amounts to a signature. It is therefore possible that an exchange of texts might amount to a binding contact.

When are electronic contracts legally binding?The Act clarifies the timing of contract formation by stating that when acceptance of a contract is sent by electronic communication (e.g. email or text), the contract is formed when the email/text arrives at the recipient's address, not when it is read or sent.

To date, few jurisdictions consider texting to be legal written notice, and none consider them to be legal documents. Meaning, it may occasionally be legally binding when a text accepts a formal written document. But the text itself cannot be the formal written document.