Why you don’t always need a formal contract to get paid

In today’s fast-paced business world, especially in sectors like construction, it’s not unusual for deals to be struck quickly, often with a handshake, an email, or even a brief text exchange. While this can make getting the job done easier, it can also cause complications when it comes time to get paid.

At Ness Gallagher, we understand how frustrating and disruptive unpaid invoices can be for your business. We specialise in recovering debts between companies and businesses, and one of the most common concerns we hear is: “Can I recover my money if there wasn’t a formal written contract?” The good news is… yes, you can.

While a formal written contract is always advisable, it’s not a legal requirement for recovering payment. The law recognises that contracts can be formed in various ways, and often, the actions and communications between parties are enough to establish that a binding agreement exists.

This is particularly common in industries like construction, trades, and small-scale supply businesses, where projects often begin based on mutual understanding, verbal agreement, or ongoing working relationships.

If you’ve completed work or delivered goods and haven’t been paid, we can help you prove that an agreement was in place, even without a signed contract. Some common forms of evidence include:

• Emails and text messages agreeing to the scope of work, price, or timescales
• Invoices issued and acknowledged
  
• Purchase orders or delivery notes
  
• Photographs or documentation showing that the work was completed
  
• Proof of part-payment (suggesting the existence of a broader agreement)
  

When it comes to debt recovery, we take a practical approach to recovering monies owed to you. We understand the commercial pressures on businesses and aim to recover your debts without damaging valuable business relationships. 

Whether you're chasing a small unpaid invoice or a substantial outstanding balance, we will engage directly with the debtor on your behalf to try and resolve matters swiftly, draft and send formal demand letters, and initiate court proceedings if necessary. If you’re a business owner dealing with unpaid invoices, don’t assume that a lack of a written contract puts you at a dead end. You may still have a strong legal basis to recover your money, and we’re here to help you do just that.