Made a Verbal Agreement: What You Need to Know
In today`s fast-paced world, it`s not uncommon to make verbal agreements in business or personal settings. However, when it comes to legal matters, relying solely on a verbal agreement can be risky.
A verbal agreement, also known as an oral agreement, is simply a spoken agreement between two parties without any written documentation. While these agreements are legally binding in many situations, they can be challenging to enforce in court since they often lack the concrete evidence and specificity that a written agreement provides.
To ensure that your verbal agreement is valid and enforceable, there are specific requirements that must be met. These requirements include:
1. Clarity: The terms and conditions of the agreement must be clear and unambiguous. Both parties should have a clear understanding of the expectations and obligations outlined in the agreement.
2. Consent: Both parties must agree to the terms of the agreement. It`s important to establish that both parties were aware of the agreement and gave their consent to it.
3. Consideration: Verbal agreements must have “consideration,” meaning both parties must receive something of value from the agreement. This could be something as simple as exchanging services or goods.
4. Intent: There must be a mutual intention to create a legally binding agreement.
While verbal agreements can be legally binding, they are more challenging to enforce in court since it often comes down to one party`s word against the other. This is why it`s always better to have a written agreement that outlines the terms and conditions of the agreement.
It`s essential to note that some agreements must be in writing to be legally binding. Examples of such agreements include real estate transactions, contracts for goods worth over a certain amount, and contracts that last for a specific period.
In conclusion, while verbal agreements can be legally binding, it`s always best to have a written agreement to avoid any confusion or misunderstandings. If you do enter a verbal agreement, ensure that the terms and conditions are clear, both parties give consent, there is consideration, and there is a mutual intention to create a legally binding agreement.
