11 Nov Law Relating to Oral Agreement

The law relating to oral agreements, also known as verbal agreements, can be complex and difficult to navigate. In general, oral agreements are legally binding, although there are some exceptions. In this article, we’ll take a closer look at the legal implications of oral agreements and what you need to know before entering into one.

Firstly, it’s important to note that oral agreements are generally enforceable under law. However, proving the existence and terms of an oral agreement can be challenging. As there is no written record of the agreement, it can be difficult to establish the exact terms that were agreed upon. This is why it’s always advisable to have a written contract in place, even if you’ve already agreed to the terms orally.

In situations where there has been an oral agreement and the terms are disputed, there are several factors that could be taken into account when deciding if the agreement is legally binding. One of these is whether the parties involved intended to create a legally binding agreement. In other words, did both parties believe that they were entering into a contract that could be enforced by law? If the answer is yes, then the agreement is likely to be considered legally binding.

Another factor that could be taken into account is whether the terms of the agreement are clear enough to be enforceable. If the terms are too vague or open to interpretation, it could be difficult to enforce the agreement. This is why it’s important to be clear about the terms of the agreement, even in an oral agreement.

There are some exceptions to the general rule that oral agreements are legally binding. For example, certain types of contracts are required to be in writing under the law. These include contracts for the sale of land, contracts that cannot be performed within one year, and contracts for goods that are worth over a certain amount of money (depending on the jurisdiction).

In conclusion, while oral agreements are generally enforceable under law, having a written contract is always advisable. This will help to avoid any confusion or disagreements about the terms of the agreement and make it easier to enforce if necessary. If you do enter into an oral agreement, be sure to make the terms as clear as possible and ensure that both parties understand the implications of the agreement.