Verbal Agreement Mean: Understanding the Basics of a Verbal Contract
In today`s fast-paced world, verbal agreements are becoming increasingly common. A verbal agreement is a contract that is made through spoken words rather than a written document. While verbal contracts are legally enforceable under certain circumstances, they can also be difficult to prove in court. In this article, we will explore what verbal agreement means and how to create a legally binding verbal contract.
What is a Verbal Agreement?
A verbal agreement, also known as a verbal contract, is an agreement between two or more parties that is made verbally. This means that the terms of the contract are spoken aloud rather than being written down on paper. Verbal agreements are common in various situations, such as when hiring contractors or service providers. Other common scenarios include buying goods or making business arrangements.
The Basics of a Verbal Contract
For a verbal agreement to be legally binding, it must include the following elements:
1. Offer and acceptance: One party must make an offer to another party, and that offer must be accepted.
2. Consideration: Both parties must exchange something of value in the agreement. This can be money, goods, or services.
3. Mutual intent: Both parties must have the intention to enter into a legally binding agreement.
4. Capacity: Both parties must be legally able to enter into a contract. This means they must be of legal age, not mentally incapacitated, and not under duress.
Enforcing a Verbal Agreement
Enforcing a verbal agreement can be challenging, primarily because there is no written record of the terms. However, the courts do recognize verbal contracts, and they can be legally binding if the above elements are present. To enforce a verbal agreement, you will need to prove the existence of the agreement in court. This can be done through witness testimony, emails, text messages, or other forms of documentation.
Conclusion
Verbal agreements are becoming increasingly common in various industries. While they can be legally binding, they can also be difficult to prove in court. To create a legally binding verbal contract, you must include the essential elements of a contract and have the mutual intention to enter into a legally binding agreement. Ensure to keep a record of the terms and conditions agreed upon to avoid any misunderstandings later.