Form of instructions: Overview, definition, and example
What is form of instructions?
"Form of instructions" refers to the specific method or format in which one party must provide directions, requests, or authorizations to another party under a contract. These instructions can be given in writing, electronically, verbally, or through another agreed-upon medium. Clearly defining the form of instructions ensures clarity, consistency, and enforceability in business and contractual relationships.
For example, a financial institution may require clients to submit transaction requests in writing or through a secure online portal to ensure accuracy and security. Similarly, an employer may specify that employee work assignments must be communicated via official email to maintain proper documentation.
Why is form of instructions important?
Defining the form of instructions in a contract prevents miscommunication, unauthorized actions, and disputes over what instructions were given and how they should be followed. It ensures that all parties understand the proper way to communicate requests, approvals, or changes.
For businesses, a clear form of instructions clause improves operational efficiency, enhances security, and provides legal protection by establishing a verifiable record of communications. This is particularly important in industries like finance, law, and construction, where compliance and accuracy are critical.
Understanding form of instructions through an example
Imagine a financial services firm that manages client investments. To prevent fraud, the firm’s agreement states that all instructions regarding fund transfers must be submitted in writing and signed by the account holder. This ensures that unauthorized verbal requests cannot be acted upon.
In another scenario, a supplier agreement states that all purchase orders must be submitted via an online procurement system. This prevents confusion and ensures that both parties have a clear, trackable record of transactions.
An example of a form of instructions clause
Here’s how a form of instructions clause might appear in a contract:
“All instructions, approvals, and requests under this Agreement must be provided in writing via [specified method, e.g., email, secure portal, or physical document] and acknowledged by the receiving Party. Verbal instructions shall not be binding unless confirmed in writing.”
Conclusion
A form of instructions clause ensures that communications related to a contract are provided in a clear, verifiable, and enforceable manner. It helps prevent miscommunication, enhances security, and ensures that both parties follow a consistent and documented process.
By including a form of instructions clause in contracts, businesses can improve accountability, reduce risks of disputes, and ensure that all instructions are properly documented and executed.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.