Not all agreements are necessarily contractual, as the parties are generally considered to be legally bound. A “gentlemen`s agreement” should not be legally applicable and “compulsory only in honour.”    Statements contained in a contract cannot be confirmed if the court finds that the statements are subjective or advertising. English courts may balance the emphasis or relative knowledge to determine whether a declaration is applicable under the contract. In the English Case of Bannerman/White, the Tribunal upheld a refusal of the sulphur-treated hops, as the purchaser expressly expressed the importance of this requirement. Relative knowledge of the parties may also be a factor, as in the English case Bissett/Wilkinson, where the court found no misrepresentation when a seller stated that the sale of arable land would carry 2000 sheep if dealt with by a team; the buyer was considered competent enough to accept or reject the seller`s opinion. The main difference between an oral contract and a written contract is that it is more difficult to prove the existence of an oral contract. Since an oral agreement is not written, the existence of the conditions must be demonstrated by the memory of the parties and other evidence. This process is subject to errors and absurdities and leads to differences of opinion. That`s why many contracts are written. A letter gives the certainty, clarity and precision of the agreement. A letter does not depend on the memories of the contracting parties.
For these reasons, it is, as far as possible, a good practice to enter into written agreements so that all parties know what has been agreed and what is expected of them. There may be circumstances in which it would be unfair to allow the defaulting party to simply purchase damages from the victims. For example, if an art collector buys a rare painting and the seller refuses to deliver, the collector`s damage would be equivalent to the amount paid. In the United Kingdom, the courts decide whether a clause is a condition or a guarantee; For example, an actress`s obligation to organize the opening night of a theatrical production is a condition, but a singer`s obligation to study may be a guarantee.  The statute may also declare a clause or type of clause as a condition or guarantee; For example, the Goods Act 1979 s15A provides that title, description, quality and models are general conditions.