Legal transaction

A legal transaction is any act or agreement that creates, changes, transfers or ends legal rights and obligations, such as a contract, a sale of goods, shares or land, a lease or a licence. In BC, most contracts are binding once the parties agree on the essential terms and intend to be bound, whether or not the agreement is in writing.

How BC law treats it

Writing is required only for specific contracts. Under the Law and Equity Act, RSBC 1996, c 253, s. 59, a contract for the disposition of land and a guarantee or indemnity must generally be in writing signed by the party to be bound, subject to limited exceptions.

What it means for your business

An email exchange or a handshake deal can bind your business, so treat negotiations with care and put important deals in writing even where the law does not require it.

Risks and common mistakes

Assuming nothing is binding until a formal document is signed can leave you bound to terms you meant to keep negotiating; use clear 'subject to contract' wording where appropriate.

Fulcrum's business contract lawyers can help with these issues.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.