[Fish]

Asmodeus,
Haha, actually though it is an "actual contract". I guess it is good that I posted here because it appears that a lot of people have misconceptions. Word of mouth isn't the opposite of contract, in fact - it is most common type of contract. There are very few types of contracts that MUST be in writing in order to be binding, and they are listed in the Sale of Goods act and Statute of Frauds. The most common example is that any sale of real estate MUST be in writing to be binding. This is a text book example of a legally binding agreement (because I got it from a textbook):

Ned: I will wash your car for $20
Jan: Ok

Interestingly, I do have both the offers and acceptances in "writing" (in my pm box). This is more of a kettle of fish than I had hoped to get into but offers and acceptances made via electronic means (such as emails or our pms) are subject to a rule called the "postal rule" or "mail box rule". Usually, acceptance is effective in creating a contract where and when the offerer has received notice that their offer has been accepted. With non-instantanious methouds like email though, acceptance is effective where and when the offeree sends it. A textbook example to illustrate:

"a contract is formed in Saskatoon as soon as I drop my acceptance letter into the mailbox, even though you will not receive that letter in Charlottetown for several days."
and
"a contract is formed as soon as I send you an acceptance email, even if you were away from your computer and did not recieve notice until you returned to work two days later."

Lastly, because you were a little confused about what you called 'word of mouth' contracts, I should clarify that oral promises are not contracts unless there is an exchange of value.
eg,

Ned: I will wash your car
------------------
Not a contract


Ned: I will wash your car
Jan: I will give you $20
------------------
Contract

There, that is the "real deal on contracts". Hope it was easy to understand.
I should add that I am just trying to educate people on how business should be properly conducted. I am not an angel myself and I have backed out of a contract that I had with a good friend to buy riccordia because I ended up selling my aquarium and wasn't going to have any place to put it. Despite how inconveniant it would have been for me to honor that contract, I was still wrong for breaking it. Fortunately the opportunity came up that I was able to offer him a container of 'reef cilli' as compensation for his trouble.


- Chad