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Why Your Text Messages Could Be Legally Binding
In the fast-paced world of commodity trading, negotiations often happen on the move. A quick WhatsApp message here, a Telegram update there — it feels informal, efficient, and non-binding.
But here is the reality: The short answer to whether text messages are legally binding is YES.
Under international contract law, a commodity trader can be placed into a legally binding position while negotiating a deal via text message. If your digital correspondence leads a supplier to incur expenses, you might find yourself on the hook for a deal you thought was still “just talk.”
Looking at it, the danger lies in inference. If a supplier draws a reasonable inference from your text messages that a deal is finalized, and those messages cause them to prepare goods for export (to perform), a legal obligation is created.
If you, acting as the buyer, subsequently cancel the deal after the supplier has moved goods to the port or paid for bagging and inspection based on your “positive” texts, you could be held liable for all expenses occurred. In the eyes of the law, your text was the “green light” that triggered their performance.
