When it comes to legal agreements, most people think of written contracts that are signed by all parties involved. However, verbal agreements also hold weight in contract law. In fact, verbal agreements are considered to be legally binding, just like their written counterparts. In this article, we’ll explore the basics of verbal agreement contract law.
What is a verbal agreement?
A verbal agreement is an agreement between two or more parties that is made without a written contract. It can be made through a conversation, phone call, email, or any other form of communication.
For a verbal agreement to be legally binding, it must meet certain criteria. First, there must be an offer made by one party to another. This offer must be accepted by the other party, creating what is known as mutual assent. Second, there must be consideration. Consideration refers to something of value that is promised in exchange for the agreement. This could be money, goods, or services.
Is a verbal agreement legally binding?
Yes, a verbal agreement is legally binding. However, proving the terms of the agreement can be difficult without any written documentation. This can lead to disputes and disagreements between the parties involved.
It’s important to note that certain types of agreements must be in writing to be legally binding. These agreements include real estate contracts, contracts that cannot be completed within one year, and contracts for the sale of goods over a certain value.
Enforcing a verbal agreement
If a verbal agreement has been broken, the injured party can take legal action to enforce the agreement. However, as mentioned earlier, proving the terms of the agreement can be difficult without any written documentation.
One way to strengthen a verbal agreement is to have witnesses present during the conversation. This can help establish the terms of the agreement and make it easier to prove in court. Another option is to create a written summary of the agreement and have both parties sign it. This can serve as evidence of the agreement in case of a dispute.
In conclusion, verbal agreements are a valid form of contract law. However, they can be difficult to enforce without written documentation or witnesses to support the terms of the agreement. It’s always a good idea to put important agreements in writing, especially if they involve significant amounts of money or valuable assets.
