The rules for the making of a legally binding contract for a sale or other disposition of an interest in land are radically different to those governing other contracts.
In short if a contract to sell or dispose of an interest in land is not in writing then there is no contract.
The formalities are further limited. The written agreement must incorporate all terms expressly agreed - including an acknowledgement that there is a contract. And the agreement must be on one document signed by both parties or where contracts are exchanged, in each of the documents, each signed by one of both parties.
The proliferation of case law since the rules were tightened in 1989 suggests that this is still an area with problems.
Principles recently decided include:-
If there are any differences between 2 contracts exchanged, no matter how small, the contract will not be enforceable;
Any variations to an already concluded contract must comply with the same rules for the formation of the initial contract;
A contract must be signed by all parties to it;
Even if the correct formalities have been observed, the terms must be certain for the contract to be enforceable;
There are limited exceptions to these rules;
The Courts will in limited circumstances enforce an agreement which does not comply with the rules on formation, but only to "right a wrong" and to assist someone who has acted to his detriment in reliance of that agreement.
The technicality of these rules will continue to necessitate early involvement of legal advisers with specialist real estate experience.
