Learn Everything About the Verbal Agreement

Standardized Legal Documents Learn Everything About the Verbal Agreement

The Verbal Agreement—Explained

When doing business, it’s important to set out the rules and duties of each party involved ensuring there will be no obstacles later on. The best way to do that is by creating legally binding contracts in written form, such as the non-compete agreement or the non-disclosure contract. You can count on DoNotPay to generate both of those for you and many other legal documents!

What happens if that contract has to be in spoken form—does it still stand in court? We provide you with all the answers about the verbal agreement and how to prove it in court!

What Is a Verbal Agreement?

A verbal agreement is a contract made between two parties doing business. It contains all of the elements that a written and legally binding contract would contain. The only difference is that the verbal agreement, as the name suggests, is conducted in spoken form.

Certain contracts have to be in written form, such as the contracts for:

  1. Selling or buying a house
  2. Purchasing a car from a licensed trader

If you’re conducting business that does not require a written contract, we’ll provide you with all the necessary info on how to go about having a verbal agreement instead.

Are Verbal Agreements Legally Binding?

If you have decided on a verbal agreement instead of a written one, you are probably wondering whether the agreement is legally binding. The verbal agreements aren’t always legally binding, but there are ways to ensure that they stand in court!

If you include the following items in your verbal agreement, the chances of it being legally binding are much higher:

ItemWhat To Do

Offer and Acceptance

Make sure that an offer had been made and accepted by the other party

Consideration

An item of value has to be exchanged for a promise, and it does not have to be money

Intention

Both parties need to have the intention of making a legally binding contract and agree upon the matter

Capacity

Each party involved must have the legal capacity to make the contract

How To Prove a Verbal Contract?

Let’s say you made a verbal agreement with someone, and now you need to prove it in court. This can be quite challenging if there isn’t any proof of a conducted business apart from your word. Further issues that can arise are:

  • The other party being dishonest about the terms of the agreement
  • You and the other party remember the agreement differently

The best option to prevent difficulties in court is to have any type of document ready to support the verbal agreement. This doesn’t have to be a contract or a long document stating everything you covered in the verbal agreement. An email or a letter signed by both parties is often enough to convince the court.

Another way to prevent complications is to record the conversation while making the verbal agreement. You must discuss this with the other party, and you both need to agree upon it because you’re not allowed to record anyone without their knowledge. If the other party agrees to it, you can always have the recording ready and use it as proof of the verbal agreement.

The Advantages and Disadvantages of Having a Verbal Agreement

Like any other contract or legal document, the verbal agreement has its pros and cons. We will list some of the most common ones so that you can decide if it is the right choice for you.

AdvantagesDisadvantages
  • Lack of a written process saves a lot of time
  • Verbal agreements are easier to make than written ones
  • You’ll have the option to cancel an offer before the business is conducted without repercussions
  • Many contracts have to be in written form by law
  • It can be difficult to prove the verbal agreement in court
  • You can forget the terms of the agreement over time

Let DoNotPay Cut Your Work in Half by Generating Your Legal Docs for You!

Making legal documents and contracts often requires paying a legal advisor for help. This can prove quite difficult since creating agreements isn’t something we do on a day-to-day basis. That’s why DoNotPay has come up with a solution that will help you save time and money when drafting agreements and legal docs!

Follow the next few steps and download your document in minutes:

  1. Go to DoNotPay in any web browser
  2. Type in the name of the document you want us to generate
  3. Give us additional information about you and your business

After completing these instructions, DoNotPay will create your document. All that is left to do is to sign or notarize it. Each party will probably have to sign it, but that depends on the document at hand.

We offer you a list of the legal documents you can easily create using our app:

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