VERBAL CONTRACTS: ARE THEY ENFORCEABLE?

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People often call my radio show claiming they have a verbal contract and they want to know if it is binding?  Many of them say an attorney told them verbal contracts ARE enforceable. So what’s the real story?

There are some areas of business where verbal contracts are specifically not recognised. For example, in Colorado verbal contracts may not be used in real estate transactions.

So what about other areas of law? Can verbal contracts be enforced? Here is a simple answer:  YES. VERBAL CONTRACTS CAN BE ENFORCED

BUT ONLY IF …

  • Both parties are in total agreement of all terms and conditions.
  • For example, if the parties agree that the cost of a service is $5,000 – no problem!

VERBAL CONTRACTS ARE NOT ENFORCEABLE …

  • If one party objects to any terms or conditions (unless the other party can prove it)

 So you see why verbal contracts are almost useless? All it takes is a difference of opinion to make it almost impossible to enforce. It is always better to put terms and conditions in writing, agreed to by all parties.

BLOG LEGAL STUFF READY , , , ,

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