Contracts agreed over WhatsApp can be binding
A series of message between two businesses made via WhatsApp messaging can create a valid and binding contract, so ruled the High Court recently in a landmark decision.
The High Court decision ruled that an informal exchange of messages between a developer and a demolition company constituted a valid contractual agreement and at Pearson Solicitors, our commercial team say that this is a salutatory lesson to other business owners.
Jaevee Homes Ltd v Steve Fincham
In Jaevee Homes Ltd v Steve Fincham (2025) the Claimant paid only £80,000 of the Defendant’s invoices totalling £195,857, claiming that deal was agreed via WhatsApp and therefore the invoices themselves, were invalid.
However, the Judge found that as the messages between the CEO of Jaevee and Mr Fincham (a demolition contractor) covered scope of work, price and clear payment terms, there was a binding agreement and the invoices were payable.
“This landmark ruling confirms that short, simple exchanges without legal jargon are sufficient to create a binding, enforceable contract and serves as a reminder to be very careful what you put in writing,” warns Commercial Litigation Lawyer, Asa Cocker.
WhatsApp contract dispute
In the ruling, Justice Roger ter Haar KC, a judge at the Construction and Technology Court, concluded that emails and WhatsApp messages between Mr Fincham and Jaevee's director Ben James Smith "constituted a concluded contract”
“In my judgment, the exchange of WhatsApp messages, whilst informal, evidenced and constituted a concluded contract.”
The contract dispute over WhatsApp involved demolition works at a former nightclub in Norwich.
“This messaging exchange acts as a warning to businesses to make sure clear defined terms of business are set out, contracts are properly drafted and in essence all business dealings should be properly managed clearly defining payment terms, the devil is always in the details and a commercial solicitor will advise on all of this for you,” advises Asa Cocker.
At Pearson our commercial team can help with all aspects of running a business. In an ideal world we prefer to help businesses manage their risk from an early stage to avoid commercial disputes occurring in the first instance. However, when problems do arise our initial focus is on trying to resolve the dispute.
How can we help?
If a contract dispute arises and you need expert legal advice contact our contract dispute solicitors on 0161 785 3500 or email enquiries@pearsonlegal.co.uk.
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