When it comes to legal agreements, we often think of written contracts as the gold standard. However, verbal contracts can also be legally binding under some circumstances. Here`s what you need to know.
First and foremost, it`s important to understand that there are some types of contracts that must be in writing to be enforceable. These include contracts for the sale of goods over a certain dollar value, agreements that cannot be performed within a year, and contracts for the sale of real estate. Additionally, some states have laws that require certain types of contracts to be in writing, regardless of their value or nature.
Assuming the contract in question doesn`t fall into one of these categories, a verbal agreement may be legally binding if certain conditions are met. First, there must be an offer made by one party and an acceptance of that offer by the other. Second, there must be consideration – something of value exchanged between the parties – such as payment for services rendered. Finally, there must be mutual assent, meaning both parties must understand and agree to the terms of the contract.
So, if you agree to paint someone`s house for $1,000 and they agree to pay you upon completion, you`ve just entered into a verbal contract that is legally binding. Of course, the challenge with verbal agreements is proving what was said and agreed to. This is where written contracts have an advantage – they provide a clear record of the terms of the agreement.
If you find yourself in a situation where you`ve entered into a verbal agreement and the other party is not holding up their end of the bargain, there are legal remedies available. You can try to work out the issue through negotiation or mediation, or you can pursue legal action.
In summary, verbal contracts can be legally binding under certain circumstances. However, they can be difficult to enforce if there`s a dispute over the terms of the agreement. To protect yourself, it`s always best to get your agreements in writing whenever possible.