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Written vs Oral Contracts in Ghana: What the Law Recognises

05 Oct 2026

3 min read

Not every contract has to be in writing to be legally binding. Under Ghanaian law, an agreement may be made orally or in writing and may be legally enforceable, depending on the circumstances and any legal requirements that apply to the particular transaction.

The important questions to ask are, “Did the parties reach a legally binding agreement?” and “Does the law require this particular type of agreement to be in writing?”

What This Guide Explains

This guide explains:

  • What constitutes a written contract;

  • What constitutes an oral contract;

  • When an oral agreement may be legally enforceable;

  • The practical difficulties of relying on oral agreements; and

  • Situations where the law requires contracts to be in writing.

This guide provides general legal information only. It does not assess individual contracts, agreements or disputes.

Written Contracts

A written contract is an agreement where the terms are recorded in writing.

This may include:

  • A formal agreement signed by the parties;
  • A letter or memorandum recording the agreement;
  • Emails or exchanged correspondence; and
  • Documents that, when read together, establish the terms agreed between the parties.

A written contract does not necessarily have to be contained in one formal document. What matters is whether the terms of the agreement can be identified and reliably established.

Why Written Contracts Are Useful

A written contract can:

  • Provide a clear record of what the parties agreed;
  • Define the rights and obligations of each party;
  • Reduce uncertainty about important terms;
  • Provide evidence if a dispute arises; and
  • Set out matters such as payment, timelines, termination and remedies.

Common Examples

Written contracts are commonly used for:

  • Business and commercial transactions;
  • Employment relationships;
  • Loans;
  • Services and consultancy arrangements; and
  • Property transactions.

For written contract templates, browse Niellégal's Legal Templates.

Oral Contracts

An oral contract is an agreement made through spoken words rather than through a written document.

Oral contracts may arise in everyday situations, such as:

  • Informal service arrangements;

  • Verbal agreements between individuals; and

  • Immediate transactions where terms are agreed on the spot.

Can an Oral Contract Be Legally Binding?

Yes, an oral agreement can be legally binding.

Whether it is enforceable will depend on whether the requirements for a valid contract are satisfied and whether the law requires that particular type of agreement to be made or evidenced in writing.

Depending on the circumstances, relevant considerations may include:

  • Offer;
  • Acceptance;
  • Consideration;
  • Intention to create legal relations;
  • Capacity to contract;
  • Free and voluntary consent; and
  • Any other legal requirement applicable to the particular transaction.

Therefore, the absence of a written document does not, by itself, mean that no contract exists.

The Main Problem with Oral Contracts: Proving the Agreement

The fact that an oral contract can be legally binding does not mean that relying on one is always a good idea.

The biggest practical difficulty is often proof.

If a dispute arises, the parties may disagree about what was actually agreed. Without a written record, the court may have to consider evidence such as:

  • What the parties said;

  • Witness testimony;

  • The conduct of the parties;

  • Payments made;

  • Correspondence or messages created after the conversation; and

  • Other surrounding circumstances.

This can make a dispute more difficult and expensive to resolve.

Other Risks of Oral Agreements

A. Unclear or Incomplete Terms

Important terms may not be discussed or remembered clearly, including:

  • Price;
  • Scope of work;
  • Payment dates; and
  • Responsibilities of each party.

B. Different Recollections

Parties may genuinely remember the same conversation differently, particularly after considerable time has passed.

C. Difficulty Establishing What Was Agreed

Even where both parties genuinely intended to enter into an agreement, disagreement about the precise terms can make enforcement more difficult.

When Does the Law Require Writing?

Although oral contracts may be enforceable, some transactions are subject to specific legal requirements concerning written documentation or other formalities.

Examples include:

A. Contracts of Guarantee

Under the Contracts Act, 1960 (Act 25), an agreement whereby a person guarantees the due payment of a debt or the due performance of any other obligation by a third party is generally void unless it is in writing and signed by the guarantor or his agent, or is entered into in a form recognised by customary law.

B. Interests in Land

Transactions involving interests in land are subject to specific statutory requirements concerning matters such as form, execution and, where applicable, registration.

C. Employment Contracts

Under the Labour Act, 2003 (Act 651), an employment contract must be in writing where the employment is for six (6) months or more, or amounts to the equivalent of six (6) months' work within a year. The contract must set out the rights and obligations of the parties in clear terms.

Where a particular transaction is subject to a statutory requirement concerning writing or another formality, an oral agreement may not have the same legal effect as an agreement that satisfies the required form.

For written contract templates covering these situations, browse Niellégal's Legal Templates.

Why This Matters

Understanding the difference between written and oral contracts can help you:

  • Recognise when an agreement may be legally binding;
  • Understand the importance of evidence;
  • Reduce the risk of disputes;
  • Protect your interests; and
  • Identify situations where additional legal formalities may apply.

If an agreement involves significant money, important obligations or substantial risk, putting the terms in writing is usually the safer approach.

A few minutes spent documenting an agreement can prevent a much bigger dispute later.

Need More Help With a Contract?

Understanding the general legal framework is an important first step, but the legal effect of an agreement can depend on the specific facts, terms agreed by the parties and any legal requirements applicable to the particular transaction.

Explore Niellégal's Contracts & Agreements resources for more practical information on contracts, agreements and related legal issues.

For a specific legal question, use our Consult a Lawyer feature to request an introduction to an independent lawyer on the Niellégal Professional Network.

Important Note

This guide provides general legal information for educational purposes only. Laws may have changed since this guide was last updated. For specific legal advice about your situation, please consult a qualified lawyer. Accessing or using this information does not create a lawyer–client relationship.

 

Last updated: October 2026