A property lawyer has warned that landlords might fail to realise their tenant has given notice after a court ruled that a WhatsApp exchange was sufficient to create a contract.
David Smith, at Spector Constant & Williams (formerly at JMW), says the technology and construction court judgement is likely to have far-reaching consequences in the private rented sector.
In the recent case, a contractor took legal action against a developer when he wasn’t paid. The initial contract terms were set out in an email exchange which included a full written quotation, and further email discussions about the works and timing moved to WhatsApp with a discussion of price.
The developer argued that the exchange of WhatsApp messages was nothing more than a notification that the demolition contractor had won the contract and there was not sufficient in this to allow for a contract to be formed. However, the court ruled the WhatsApp exchange set out the basis of the contract.
Smith explains that there have been other legal rulings in the UK and in Canada that relatively informal email exchanges could create a contract if there was enough in them to infer the terms of an agreement.
He advises that care needs to be taken with WhatsApp messages to ensure it is clear that any agreement is pending a full written contract.
Meanwhile, the Renters’ Rights Bill will allow tenants to give notice by any means if it is in writing, he adds. “I have been concerned that this would include notice by WhatsApp,” says Smith. “The fact that the courts will accept a contract being formed by WhatsApp increases my concern that they will also accept a notice being given in the same way.”
He tells LandlordZONE that it could be a particular problem where a letting agency has multiple staff - with tenants using various ways to contact them. “What happens if a staff member has left and their phone number isn’t monitored? A tenant could have served notice, but it might not have come to the agency’s attention.”
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