Sales persons are sometimes advertising their service as "contract free", so that they would get a better chance to convince you to sign up for their service. I guess the reason why this works is because to average person "contract free" typically means that you don't have to read fine print on a written contract that most of the time works against you.

> 
> **However, isn't this misleading advertising to claim that there is "no contract", because there always will be a contract - either verbal or written on a paper under different title (e.g. Application Form, "Unicorn tears")?** 
> 
> 
> 

Based on answer I received [here](https://law.stackexchange.com/questions/5718/if-there-was-no-written-contract-in-the-first-place-would-a-phone-call-be-enough), the person claimed that it does not matter what is the title of the document - so document with title "Application Form" could incorporate another document via [reference](https://en.wikipedia.org/wiki/Incorporation_by_reference) that specifies terms. Effectively you actually end up having a contract, but the only difference is that you did not explicitly sign the referenced document and did not have a chance to read it; and this works against you. Or another person confirmed [here](https://law.stackexchange.com/questions/5613/no-written-contract-do-i-have-to-pay-undisclosed-early-termination-fee) that there does not have to be any paper signed at all for judge to think that there was a contract in the first place. Also, another person told [here](https://law.stackexchange.com/questions/5739/do-both-parties-need-to-explicitly-agree-upon-price-of-service-before-doing-it) that the terms don't need to explicitly be mentioned in the first place, if price (and possibly late fees) were omitted from contract, then judge will figure out what is fair.

> 
> **What would judge do if you were able to prove that other party claimed that their service is "contract free"?**
> 
> 
> 

If sales person was **honest** would he have to explain to the other party that "contract free" actually means:

> 
> You know our service is only "***written*** contract fee" and not "contract free". However, this is the exact reason why you would have to be really dumb to enter into business with us orally or just via Application Form, because now instead of just dealing with the fine print issue that you would have had with written contract, now you will also have to deal with [incorporation by reference](http://Incorporation_by_reference) issue where we can incorporate terms and conditions from Application Form into our website or somewhere else; also, now instead of knowing what are the exact fees (e.g. ETF, late fees) that we would charge from you we will simply charge whatever we think is "fair amount". If you disagree with the amount of fees we charge, then no worries judge will decide what is fair for you. However, remember, just because that we did not disclose such fees in contract it does not mean that we can't charge them from you.
> 
> 
> 

Does monologue from "honest" sales guy above really explains how our legal system works, if there is "no contract"? Note that this question is only asked from *legal point* of view and not from *building good relationship* point of view.

*I will wait for multiple answers before accepting the right one. I will give preference to that answer that will be backed up with precedent case where judge discusses meaning of "no contract".*