Most contractual disputes turn on four questions: whether a binding contract was concluded, what its terms are, whether it may be set aside or ended, and what remedies are available if it is not performed. Each of the questions below is addressed on its own page, by reference to the law of Trinidad and Tobago. Each page sets out the legal position, its practical implications, and the steps that should be taken.
These questions belong to Corporate and Commercial Law, the practice page that sets out how such a matter is run.
Last reviewed 22 September 2026
Formation of a contract
- What makes an agreement legally binding? Offer, acceptance, consideration, an intention to create legal relations, and sufficiently certain terms.
- Is a verbal agreement legally binding? Ordinarily yes. Land and guarantees require signed writing; a sale of goods of $100 or upwards requires it only where none of the statutory alternatives to writing is satisfied.
- Can a contract be formed by WhatsApp message, text message or email? Yes, where the messages disclose a clear offer and acceptance; the Electronic Transactions Act confirms that electronic form is no bar.
- Must a contract be in writing, signed or witnessed? Generally not. Land and guarantees require signed writing and deeds have their own formalities; a sale of goods of $100 or upwards requires writing only where none of the statutory alternatives is satisfied.
- Are agreements between family members or friends legally binding? They are presumed not to be, unless the evidence establishes an intention to be bound.
- Are agreements in principle, letters of intent and memoranda of understanding binding? It depends on their terms and on the parties' subsequent conduct.
- Can a minor enter into a contract? Yes, but most such contracts cannot be enforced against a person under eighteen.
- Is a shop obliged to sell goods at an incorrectly displayed price? No. A displayed price is an invitation to treat (an invitation to customers to make an offer), not an offer.
The terms of a contract
- Is a person bound by a contract signed without reading it? Generally yes, subject to narrow exceptions.
- Do "no refunds" and "at owner's risk" notices protect a business? Only within the limits of the common law and the Unfair Contract Terms Act.
- What rights does a buyer have when goods are defective? Rejection and recovery of the price until the goods are deemed accepted, and damages in either case.
- Can a contract be varied after it has been signed? Only by agreement, and ordinarily only for consideration or by deed.
Setting aside and ending a contract
- Can a contract be cancelled after it has been signed? No general cooling-off right is in force; a lawful ground is required.
- What remedies are available to a party misled into a contract? Rescission, if the misled party acts promptly, and in many cases damages.
- Is a contract signed under pressure valid? It stands unless set aside for duress or undue influence; commercial pressure alone is insufficient.
- What happens when events beyond the parties' control make performance impossible? The contract may be frustrated, subject to a high threshold and to any force majeure clause.
- When is a deposit refundable? It depends on which party defaulted and on whether the payment was a deposit or a part payment.
Breach and remedies
- What constitutes a breach of contract, and what remedies are available? Any unexcused failure to perform; only a repudiatory breach justifies termination.
- How are damages for breach of contract assessed? So as to place the innocent party in the position it would have occupied had the contract been performed.
- What is the time limit for bringing a claim for breach of contract? Four years from the breach, subject to specified exceptions.
- What remedies are available when a contractor fails to complete the works? Termination, completion by another contractor, and recovery of the excess cost.
- Can a seller who withdraws from a sale be compelled to complete it? In a sale of land, frequently yes, by an order for specific performance.
Important notice. This commentary is a general statement of the law of the Republic of Trinidad and Tobago and is provided for information purposes only. It does not constitute legal advice, and it is not to be relied upon as legal advice or as a complete or current statement of the law. The law may have changed since the date of last review. Readers should verify all information for themselves, including the current text of any legislation referred to, and should obtain legal advice on their particular circumstances before acting, or refraining from acting, on anything in this commentary. Reading this commentary does not create an attorney-client relationship, and no responsibility is accepted for any loss arising from reliance on it. Any decision of a court referred to in this commentary is cited for the principle it states; similar results cannot be guaranteed, and a decision may be subject to appeal or change.
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Commentary / Contract Law
Contract Law in Trinidad and Tobago
By Suraj Sakal, Attorney-at-Law, called to the Bar of the Republic of Trinidad and Tobago