Instant messaging and social media platforms such as WhatsApp, Facebook, Messenger and Instagram are staples of modern life and the use of these platforms has been the subject of many judicial decisions ranging from matters of defamation to contract formation. This article aims to provide an overview of the recent English High Court decision in Jaevee Homes Ltd v Fincham (trading as Fincham Demolition) [2025] EWHC 942 (TCC) (‘Jaevee Homes’) where it was held that a valid contract was concluded by certain WhatsApp exchanges instead of by a formalised subcontract submitted later on.
In Jaevee Homes, Jaevee approached Fincham to carry out demolition works on an old nightclub. After visiting the site, Fincham provided a written quotation for demolition works for a cumulative sum £256,000 plus VAT. Jaevee’s CEO, James, reached out to Fincham via email (using an email address belonging to a different company) asking whether the works could be completed within eight weeks to which Fincham replied that the works would take at least twelve weeks to complete. Beginning on May 12, 2023, James and Fincham communicated via WhatsApp regarding the quoted price. In an attempt to stay competitive, Fincham proposed a reduced price of £248,000.
On May 17, 2023, the formative WhatsApp conversation occurred. Fincham asked whether the job was his and James requested that he start on Monday (May 22, 2023). Fincham responded indicating that preparatory scaffolding works can commence on Monday, but workers will start the following Monday (May 29, 2023). A few minutes later, Fincham sent a follow up message which read “Are we saying it’s my job mate so I can start getting organised mate” to which James responded “Yes”, “Monthly applications”. Fincham clarified that he would be seeking payment 28-30 days from the issuance of an invoice and not based on Jaevee accessing drawdown facilities. Fincham’s message ended “call you at 8:30 mate Thanks mate appreciated.” James’ response was “Ok” “Chat in the am.”
On May 26 2023, an employee of Jaevee sent an email containing a subcontract which listed Jaevee and Fincham Demolition (Fincham’s trading name) as the contracting parties. The subcontract contained payment terms different to those contained in the WhatsApp exchanges. Fincham neither acknowledged receipt of that email nor signed the enclosed subcontract.
Fincham commenced work on May 30, 2023. Through June 9, 2023 to July 27, 2023, Fincham issued four invoices totalling £195,857.50 plus VAT. Jaevee paid an aggregate of £80,000 over several payments. The parties fell into a dispute on the sums due for the work done and Jaevee purported to terminate any agreement between them.
Fincham initiated adjudication proceedings in which the adjudicator decided that (i) a valid contract was concluded via the WhatsApp exchanges for an agreed sum of £248,000; (ii) the parties agreed, by the WhatsApp exchanges, that invoices would be paid within 28-30 days of being issued; and (iii) the documents sent by email were irrelevant to the formation of a contract (which was already concluded by the WhatsApp exchanges). The adjudicator accordingly ordered Jaevee to pay a total of £145,896.31.
Jaevee failed to pay the sums ordered to be paid by the adjudicator and Fincham initiated enforcement proceedings and succeeded. Jaevee did not pay the outstanding sums and instead initiated certain simplified proceedings under the English CPR. Jaevee sought declarations that Fincham agreed to carry out the demolition works pursuant to the formalised subcontract; or, alternatively, that Fincham agreed to carry out the demolition works pursuant to a basic contract formed via WhatsApp exchanges which included a requirement that Fincham issue requests for payment monthly; and that the four invoices did not constitute valid payment applications under English construction legislation. It was held that the exchange of WhatsApp messages, though informal, evidenced and constituted a concluded contract. The Court reasoned that the parties intended that the works would be started as soon as possible, the scope of works was agreed, a price was agreed upon, there was no express indication that the final terms of the agreement was subject to contract or otherwise depended upon the incorporation of Jaevee’s standard terms. The Court thus granted a declaration that Jaevee engaged Fincham to carry out the demolition works pursuant to a basic contract formed by the exchange of emails and WhatsApp messages and, as part of this basic contract, Fincham was entitled to issue monthly applications for payment which Jaevee would have to pay within 28-30 days of such application.
Although Jaevee Homes was decided within the context of a construction law dispute, this decision reinforces recent judicial trends on contract formation and demonstrates the impact of modern technology use and its implications in the business world. For example, a Canadian court has previously ruled that a ‘thumbs up’ emoji was a valid means of accepting the terms of a contract (discussed further here: https://trinidadlaw.com/watch-what-you-say-or-emoji-contract-formation-in-the-modern-age/).
Local courts have not yet frontally addressed whether a valid commercial contract can be concluded via WhatsApp (or any other social media platform). Nonetheless, there is little reason to doubt that a local court would not so hold once the surrounding circumstances permit and the essential elements of a contract are present (ie offer, acceptance, consideration and intention to create legal relations).
It would therefore be incumbent upon businesspersons to ensure careful use of instant messaging and social media platforms to avoid seemingly innocent communications binding them to firm contractual commitments. To avoid such situations, including as occurred in Jaevee Homes, persons negotiating entry into a contract may wish to expressly label all preliminary communications as being ‘SUBJECT TO CONTRACT’ and then ensure that all discussed terms are clarified in a formalised written agreement prepared by competent attorneys-at-law and signed by all parties before performance is carried out.