Practically, one difference would be in the level of detail. Contracts tend to go on at length about the finer points of the business relationship. Whereas, in an email, people would typically be much more brief.
The extra details can be very important.
For one, they help prevent misunderstandings. ("It's been three months, and you haven't paid me." "Oh, well it's our standard practice to pay all invoices within 12 months.")
Secondly, if the relationship becomes acrimonious, the details help limit the scope of a possible dispute. The more the parties make explicit up front, the less there is to argue about later.
Another difference concerns the Statute of Frauds. (http://www.lexisnexis.com/lawschool/study/outlines/html/cont...) Certain kinds of contracts--notably those above $500--require a signature of some kind. But, if you read ยง 6.03 in the statute, you'll see that this can be construed broadly. Often, merely including your name in an email is enough to satisfy the Statute of Frauds (http://www.internetlibrary.com/topics/statute_frauds.cfm). But if you're looking to hold someone to their word, it's safer not to rely on that.
It's better to be safe than sorry. If you want something to be binding, it's best to go with a solid contract, rather than just an exchange of emails. If you don't want to commit yourself just yet, don't assume that your emails are nonbonding. In other words, be pessimistic either way.
The extra details can be very important.
For one, they help prevent misunderstandings. ("It's been three months, and you haven't paid me." "Oh, well it's our standard practice to pay all invoices within 12 months.")
Secondly, if the relationship becomes acrimonious, the details help limit the scope of a possible dispute. The more the parties make explicit up front, the less there is to argue about later.
Another difference concerns the Statute of Frauds. (http://www.lexisnexis.com/lawschool/study/outlines/html/cont...) Certain kinds of contracts--notably those above $500--require a signature of some kind. But, if you read ยง 6.03 in the statute, you'll see that this can be construed broadly. Often, merely including your name in an email is enough to satisfy the Statute of Frauds (http://www.internetlibrary.com/topics/statute_frauds.cfm). But if you're looking to hold someone to their word, it's safer not to rely on that.
It's better to be safe than sorry. If you want something to be binding, it's best to go with a solid contract, rather than just an exchange of emails. If you don't want to commit yourself just yet, don't assume that your emails are nonbonding. In other words, be pessimistic either way.