Can You Enforce a Verbal Agreement?

You might know that contracts are always best in writing, but there may come a time that you enter into an agreement with another party without memorializing it in writing. Later, the other party might try to get out of their obligations, claiming that your discussion did not constitute an enforceable contract. Can you enforce the agreement and seek relief if the other party fails to perform?

In many cases, the answer is yes. While some contracts must be in writing under the law, verbal agreements are enforceable in certain circumstances, as long as the agreement meets the elements of a contract. Put simply, there must be an offer, acceptance, and consideration for a valid contract. 

Some instances when you need a written contract to enforce it include:

• The contract involves performance that lasts for more than a year
• Transfer of land ownership
• The sale of goods over $500

In these cases, you always need a written contract.

Written Contracts are Preferrable

Even though verbal contracts are enforceable for some agreements, you might have difficulty proving the terms of the agreement. It is all too easy for two people to disagree about the contract, and you might not have witnesses or other evidence of the initial agreement.

For this reason, it is always best for you to draft a written contract with the help of an experienced business attorney. If you do have a conflict regarding a verbal contract, seek help from a lawyer who can protect your interests under the agreement.

Speak with an Encino Business Litigation Attorney

At Urbach Law Offices, PC, we assist clients in resolving contract disputes and other issues that might lead to litigation. Contact us to discuss any concerns you have and how an Encino business litigation lawyer can help in your matter.