The failure to fulfill promises may result in disappointed hopes. But do we consider that some of these promises in the world of contracts could have legally binding consequences?
Shariah urges the fulfillment of a promise and considers it binding on those who make it. Even the law has a specific mechanism to implement promises, especially in the field of trade, in order to protect parties to the business process. But if a promise violates the law or the principles of Shariah, it is not considered binding and cannot be fulfilled.
The promise to agree is a preliminary stage that is often called the initial agreement, after which the parties complete the contracting process or declare their unwillingness to seal the deal.
The initial agreement binds one party or both to conclude a contract or deal in future within a stipulated time frame. Sometimes such agreements also set a certain deadline for both parties to finalize the deal and agree on further modalities.
We may say that before reaching an agreement, the concerned parties should go through a two-step process: Promise and negotiations. The latter part follows the initial agreement, during which each party sets conditions to protect its interests.
Another point that is important before entering a contract is the parties’ eligibility. The parties to a contract should meet all legal requirements at the time of signing the deal.
We also have verbal or oral contracts, which have their own requirements and need proper understanding. An oral or verbal agreement can create a legally valid contract without anything in writing, but concrete evidence to prove such contractual relations is necessary.
If we assume that a party suffered losses on the basis of a verbal promise or assurance, what course of action will the judiciary take? In such cases, after examining all the evidence, the judiciary makes it binding on the other party to fulfill its promise or compensate for the damages caused due to non-fulfillment without any valid reason.
It is, however, advisable to enter into a contract after completing all written formalities, and to ensure that all conditions are set in writing to avoid any confusion in the future.
• Dimah Talal Alsharif is a Saudi legal consultant, head of the health law department at the law firm of Majed Garoub and a member of the International Association of Lawyers. Twitter: @dimah_alsharif
