Surface water waves of significant interest, such as tsunamis and solitary waves, are nonlinear and dispersive waves. Unluckily, the equations derived from first principles that describe the propagation of surface water waves, known as Euler's equations, are immensely hard to study. For this reason, several approximate systems have been proposed as mathematical alternatives. We show that among the numerous simplified systems of PDEs of water wave theory there is only one that is provably well-posed (in Hadamard’s sense) in bounded domains with slip-wall boundary conditions. We also show that the particular well-posed system obeys most of the physical laws that acceptable water wave equations must obey, and it is consistent with the Euler equations. For the numerical solution of our system we rely on a Galerkin/finite element method based on Nitsche's method for which we have proved its convergence. Validation with laboratory data is also presented.