A verbal contract is an agreement between two or more parties that is not accompanied by a written document. In other words, there may not necessarily be any record of the agreement. If there is a dispute about verbal contracts, the cases are often brought to civil litigation attorneys. If you conduct business of any kind, it is essential that you understand the limitations—and ramifications—of verbal contracts because at some point, you may find yourself entering into one. 

What Constitutes a Verbal Contract?

A verbal contract is only valid if it possesses certain elements. For a contract to be enforceable, whether it is a written contract or a verbal contract, the contract must have been formed by one party making a valid “offer” and the other party accepting the  “offer.”  The parties must have had a mutual understanding of the basic terms of the agreement, sometimes referred to as a “meeting of the minds.”  Also, the parties must have each given something of value – even just a promise to do something – in exchange for receiving something of value from the other party.  

What Are the Challenges Associated With Verbal Contracts?

Although verbal contracts that meet the parameters mentioned above are legally binding, enforcing them can be challenging. If you enter into a verbal agreement with someone but end up filing a suit against them for breach of contract, you must be able to prove its terms in order to win the case. You must also be able to prove that you followed your end of the deal. If you are unsure how to do either, a seasoned civil litigation attorney can help gather sufficient evidence. This might include eyewitness testimony, records of the exchange of payment and services, or other evidence showing that a valid, enforceable contract was formed.  As a general matter, it is better to put any contract in writing.  

If you need help enforcing a verbal contract, turn to a civil litigation attorney at Burglin & Doxey, PC. Based in Fairbanks, AK, the attorneys at this firm have over three decades of combined experience advising and representing clients regarding a variety of legal matters.  . With a broad range of practice areas, they are committed to providing strategic, one-on-one guidance and practical legal solutions for even the most complicated disputes. In addition to civil litigation, they practice family law, criminal defense, personal injury law, business formation, estate planning, and defense of fish and game offenses. To learn more about their knowledgeable team, visit their website. To schedule an initial consultation, call (907) 456-4020.

Disclaimer: this article is for discussion purposes only. Please contact Burglin & Doxey, PC if you are seeking legal advice.