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Turning a Statement of Account into a legally binding Contract
What turns all the Terms and Conditions you have added to a Statement of Account (SOA)(including the Default & Liability Clause & Notice) into a legally binding contract?
I had a lawyer say to me that they didn’t think my modified SOA with my added Terms and Conditions was a legally binding contract for a couple of reasons:
1. Noone from my loan company had signed it.
2. Noone from the loan company had agreed to my terms and conditions that I added to the SOA.
What part of the Statement of Account process makes it a legally binding Contract when you send it to a loan company to discharge a loan using a promissory note for example? Is it solely the addition of the 5 cent stamp or a stamp of a different denomination (e.g. 10 cents) that turns it into a legally binding Contract which is providing consideration for the Contract?
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4 Replies
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The statement of account came pre signed, you completed it.
That’s what makes it a legally binding contract I believe-
Ok.
Yes, I am aware from what Mark has said that a company or corporation’s seal is its signature and you can add terms and conditions to it according to the BOE Act (I forget what section is applicable??). However, I wasn’t sure at what point it became a legally binding contract. Maybe when you provide consideration with the stamp.-
Yeah your correct about the stamp being consideration I believe
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I think you are referring to Section 47(2) and 48 about what happens if they refuse a legitimate payment to discharge a liability.
What binds the contract is when you accept their corporate seal as their signature, then you provide your amended terms written by hand and with numbers in word format, sign it, include “non negotiable” etc. and then affix a 5c stamp with your signature across it.
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