What is the legal status of a verbal contract?

Answer 1

Three Elements of a Verbal Contract In order to be considered valid, a verbal contract must contain three elements: offer, acceptance, and consideration. • Offer: The person making the offer in a verbal contract must communicate their intent to enter into a contract. A verbal contract is not considered valid if all parties do not agree to the terms of the offer. Also, verbal contracts are only valid for a specified period of time and not indefinitely. • Acceptance: A verbal contract is not valid until the offer is accepted. The acceptance of a verbal contract occurs when the person to whom the contract is offered voluntarily indicates agreement to its terms and conditions. • Consideration: In addition to an offer and acceptance, verbal contracts must contain consideration. This means that each side must give the other something of value for the agreement to be binding. In most verbal contracts, this is an exchange of money, such as a down payment. However, in some cases, it is not money but a promise that is exchanged. Verbal Contract Law Verbal contracts are a convenient and commonly used form of agreement between two parties. However, the main problem with a verbal contract is that if any problems should arise and there were no witnesses to the agreement, the case is reduced to one party''s word against another''s. Even if verbal contract law is followed, a verbal contract is often easily contested. The best way to ensure that your contract will be binding is to consult with a legal professional who can help you understand the law and determine your options. If you are involved in a dispute over a verbal contract, a qualified contract lawyer can help you maximize your legal rights and interests .

Answer 2

Verbal agreements are contracts. However, the enforcement of the same will depend heavily on your ability to substantiate the verbal agreement, the nature of the agreement, with whom it was made, and the statutes of your state (in the US). A verbal agreement can be a binding contract provided it has all the elements of a contract (offer, acceptance, a meeting of the minds on essential terms and consideration) and as long as it is not a specific type of contract that is required to be in writing by state laws. All states have laws called generally Statutes of Frauds, which require that certain contracts be in writing. Some statutes do not simply state that the contract is invalid if not in writing. Instead the laws might say that no action may be brought on a contract of a certain type unless it is in writing. Examples of such contracts are typically ones for purchase and sale of real estate, ones which grant security interests and some prenuptial agreements to name a few. Different states have different laws so you must check the law of the state where the contract is made.

The biggest problem with verbal contracts is not that they are unenforcible in court, because most are. The problem is proving the terms of the contract and whether both parties fully understood the nature of the agreement. If there is no writing that states the promises being made, either party could have a different recollection of certain terms. So it is not so much that the contract is invalid; it is that you might not be able to prove what you say it is. And if you can't prove it, then it might as well be invalid.

Even certain contracts that are required to be in writing may be enforceable under the right circumstances. If partial performance of the contract has been made by one party, such as making a payment, then it would be inequitable not to enforce it as long as the terms can be proved. Partial performance is one way of proving the terms of a verbal contract.

Answer 3

That's an iffy subject. It could be argued that in many jurisdictions there is really no such thing as a "verbal" contract. There may be some nuances in your State's Common Law, but generally, as the old axiom goes: "A verbal agreement isn't worth the paper it's printed on." (Pun intended).

It comes down to PROOF. A contract, as such, should be a signed and dated instrument for it to be actionable, by it's very nature anything verbal is unproveable, unless you have an audio recording, and even that may be inadmissable. You really need to consult a lawyer, or your State's Attorney General's Office - where you can often get info on these matter for free. But I wouldn't get my hopes up because it is basically one person's word against another's in this type of situation.

Answer 4

The real deal is that a verbal contract already islegally binding. Assuming that both parties later on tell the truth about what was said.

I suppose if you wanted to add a more solidly "legally binding" aspect to it, you'd have that verbal contract witnessed by some impeccably impartial third party. Unrelated to either party by blood, marriage, friendship or financial ties, and of a profession known for integrity, such as a priest or judge.

But frankly, for all the trouble that would be, one might just as well type the agreement, and both sign in front of a notary public, with each walking away with an original.

Answer 5

It depends upon the jurisdiction. In many places a verbal contract is just as good as a written one in the eyes of the law - it is an enforceable agreement. However, it can be harder to prove the terms of a verbal agreement in court as both sides may (and usually will) have different recollections. The plaintiff must show some convincing evidence in order to prevail.

However, in some countries contracts are not enforceable unless they are in writing (in some countries the rule only applies to certain types of contract - for example, in England, verbal contracts are enforceable except if they relate to the transfer of land, where a written contract is required). Also be aware that in some countries (particularly South American and Eastern Europe) many contracts cannot be enforced unless they have been notarised, and clearly you can only notarise a written contract.

Answer 6

Verbal agreements and contracts are valid as long as they are made in good faith. There are certain elements required to create a legally binding contract and those include:

• Mutual consent and understanding
  
• Offer and acceptance
  
• Mutual consideration
  
• Mutual performance of duties

However, verbal contracts present a problem when it comes to enforcement if one of the parties has breached the terms of the agreement. With no written proof of the terms the plaintiff faces difficulty in providing evidence that will satisfy the court. Also, there is the problem of one or both parties not being honest. The party that has breached the contract is unlikely to give honest testimony in court. Those obstacles can make a decision in favor of the plaintiff unlikely.

Answer 7

Yes. If you have enough evidence to convince a judge. That may consist of such things as witnesses who were present when the deal was struck, emails, text messages, voicemails, etc.

Answer 8

False. Just like not all written contracts are valid. In general sense, a verbal or spoken contract is just as legally binding as a written contract.

Answer 9

No, all verbal contracts are not valid. The Statute of Frauds requires many things to be written, including agreements involving real property.