Verbal Agreements Binding
When it comes to making agreements, most people assume that a written contract is the only way to make it legally binding. However, verbal agreements can also be binding under certain circumstances. In this article, we will explore the concept of verbal agreements and how they can be legally binding.
What is a verbal agreement?
A verbal agreement, also known as an oral agreement, is an agreement that is made through spoken words rather than a written document. Verbal agreements can be made between individuals, businesses, or organizations.
Are verbal agreements legally binding?
It is a common misconception that verbal agreements are not legally binding. However, they can be legally binding if certain requirements are met. Here are the requirements:
1. Offer and acceptance: The first requirement of a verbal agreement is offer and acceptance. The offer is a proposal made by one person, and the acceptance is the agreement of the other person to the proposal. Both parties must agree on the terms and conditions of the agreement.
2. Consideration: Consideration is a legal term that means something of value must be exchanged between the parties. It can be money, goods, or services. The consideration must be of value and not be deemed as a gift.
3. Mutual intent: Both parties must have a mutual understanding of the agreement and its terms. Each party must have a clear understanding of what is expected of them and what they are agreeing to.
4. Competency and capacity: Both parties must be competent and have the capacity to enter into an agreement. This means that they are of legal age, not under the influence of drugs or alcohol, and mentally competent to understand the terms of the agreement.
Verbal agreements can be legally binding in some situations. However, it is always advisable to have a written agreement to ensure that there is no misunderstanding in the future. A written agreement can also provide evidence of what was agreed upon and serve as a reference point if there is a dispute.
In conclusion, verbal agreements can be legally binding if the requirements of offer and acceptance, consideration, mutual intent, and competency and capacity are met. However, it is always advisable to have a written agreement to avoid misunderstandings and serve as a reference point in case of a dispute.