PA Law Legal Video Guides · Business contracts · South Australia
Author: Manal Amro, Principal Solicitor, PA Law Pty Ltd
Last reviewed:
Can a text message be a legally binding contract? Yes. A reply accepting a quote can help create a binding agreement, even without a signed paper document. Whether a contract exists depends on the offer, acceptance, intention, exchange of value, sufficiently clear terms and any special legal requirements. The full conversation matters.
Watch: can a text message create a contract?
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Written summary: pause before accepting a quote
A message such as “Yes, go ahead” may communicate acceptance of a supplier’s offer. The absence of a handwritten signature does not, by itself, mean there is no contract. The quote, attachments, surrounding discussion and what each party does next can all be relevant.
Accepting a proposal is different from asking for more information. If you are still considering a quote, make that clear and resolve your questions before authorising work. For background, the Legal Services Commission of South Australia explains how contracts are formed.
Seven checks before replying by text or email
- Parties: confirm the legal names and who has authority to approve the work.
- Scope: check the goods or services included, deliverables and exclusions.
- Price: confirm the total cost, GST and any additional charges.
- Payment: understand deposits, instalments and payment dates.
- Timing: agree on completion dates and delivery arrangements.
- Changes: read the variation, cancellation and dispute terms.
- Documents: read and save the quote, attachments and conditions referred to in your reply.
Read the full article: Can a Text Message Be a Legally Binding Contract in Australia? It includes the $4,500 quote example, electronic communications guidance and further questions to consider.
Frequently asked questions
Can I cancel because I have not signed anything?
Not necessarily. An agreement may already exist. The terms and any applicable cancellation rights need to be checked before you cancel or refuse payment.
Does every “yes” message create a contract?
No. The meaning depends on the proposal being answered and the surrounding circumstances. A message may acknowledge information, continue negotiations or accept an offer.
Are some transactions subject to special requirements?
Yes. Certain transactions have writing or other formal requirements. Do not assume a short SMS satisfies every requirement simply because electronic communications are involved.
Already replied? Keep the complete records
Save the full message thread, quote, attachments and relevant payment records. Prepare a short timeline and obtain advice before terminating an arrangement or asserting that no contract exists.
Related videos: Delivery deadlines in business contracts · Before you sign an offer to lease
General information only: This guide is not legal advice. Your rights and obligations depend on the communications, documents, circumstances and applicable law. Obtain advice about your own situation.