Verbal Agreements Hold Up in Court: Debunking the Misconceptions

There is a common misconception that verbal agreements are not legally binding and cannot hold up in court. However, this is not entirely true. Verbal agreements can and do hold up in court under certain circumstances.

Firstly, it is important to establish that verbal agreements are legally binding. An agreement is formed when there is an offer, acceptance, consideration and intention to create legal relations. Verbal agreements meet these requirements and are legally binding as long as they are not in breach of any law.

However, the problem with verbal agreements is that they are difficult to prove. It is easy for either party to deny the terms of the agreement or claim that there was no agreement at all. This is where the misconception that verbal agreements are not legally binding stems from.

To overcome the problem of proof, it is advisable to have a written contract. A written contract provides a clear record of the terms of the agreement and serves as evidence in court. However, a written contract is not always necessary.

Verbal agreements can hold up in court if there is sufficient evidence to prove the existence and terms of the agreement. Evidence can come in many forms such as witness statements, emails, text messages, and even the conduct of the parties. For example, if a customer orders a product over the phone and the seller accepts the order, this can be considered a verbal agreement. The conduct of the seller in delivering the product and the conduct of the customer in paying for the product can serve as evidence of the agreement.

Another important factor to consider is the nature of the agreement. Some agreements must be in writing to be enforceable, such as contracts for the sale of land or contracts that cannot be performed within one year. These agreements are governed by the Statute of Frauds and must be in writing to be enforceable.

In conclusion, verbal agreements are legally binding and can hold up in court. However, the difficulty in proving the terms of the agreement and the nature of the agreement must be taken into consideration. While having a written contract is advisable, it is not always necessary if there is sufficient evidence to prove the existence and terms of the verbal agreement. It is important to always ensure that the terms of the agreement are clear and agreed upon by both parties to minimize the risk of disputes in the future.