A Verbal Agreement
A Verbal Agreement: What You Need to Know
When it comes to agreements, most people often think of it as a written contract that both parties must sign. However, not all agreements need to be put into writing. In some situations, a verbal agreement can be just as binding as a written one. This article will discuss what you need to know about verbal agreements.
What is a verbal agreement?
A verbal agreement is a legally binding agreement made between two parties that are not in writing. This type of agreement is often made in situations where drafting a written contract may be impractical or unnecessary. For example, if you agree to buy a candy bar from a convenience store, a verbal agreement is made between you and the store owner.
Are verbal agreements legally binding?
Yes, verbal agreements are legally binding, but they can be difficult to enforce in court. Without a written record, it can be challenging to prove what was agreed upon. Additionally, some agreements must be in writing to be enforceable, such as contracts for the sale or transfer of real estate.
How can you ensure a verbal agreement is enforceable?
To ensure a verbal agreement is enforceable, there are some steps you can take. First, make sure both parties understand and agree on the terms of the agreement. It’s important to be clear and specific about what is being agreed upon. Second, consider recording the conversation in which the agreement was made. This way, there will be a record of what was said. Finally, consider following up with an email or letter to the other party summarizing the details of the agreement. This creates a written record of the agreement and confirms that both parties understood and agreed to the terms.
What are the advantages and disadvantages of a verbal agreement?
One advantage of a verbal agreement is that it can be made quickly and easily without the need for lengthy negotiations or paperwork. It’s also less costly than having to hire a lawyer to draft a written contract. On the other hand, the disadvantage of a verbal agreement is that it can be challenging to enforce if one party decides to break the agreement. Without a written record, it can be difficult to prove what was agreed upon.
In conclusion, a verbal agreement can be a convenient and effective way to make an agreement between two parties. However, it’s important to remember that some agreements must be in writing to be enforceable, and without a written record, it can be difficult to prove what was agreed upon. If you are unsure whether a verbal agreement is appropriate for your situation, it’s best to seek legal advice.