When Are Verbal Agreements Not Binding
Verbal agreements may seem like a convenient way to seal a deal, but they may not always hold up in court. A verbal agreement is a spoken agreement between two parties that is not recorded in writing. While verbal agreements are legally binding in some cases, they may not be enforceable in certain situations.
There are certain circumstances under which a verbal agreement will not be binding. Firstly, if the agreement is made between parties who are minors, it will not be enforceable. A minor, defined as someone under the age of 18, is not legally able to enter into a contract, even a verbal one. Additionally, an agreement that is based on illegal activity, such as a verbal agreement to commit a crime, will not be binding.
Another reason why a verbal agreement may not be binding is if the terms are not clear. If the agreement is vague or lacks specificity, it can be difficult to enforce in court. For example, if two parties agree to “work together on a project,” but do not define the scope of the project or the payment for the work, the agreement may not be enforceable.
Timing is also an important consideration when it comes to verbal agreements. If the agreement is made outside the statute of frauds, it may not be binding. The statute of frauds requires that certain types of agreements, such as those related to the sale of goods over a certain value or real estate, must be in writing to be enforceable.
Finally, if there is a dispute over the terms of the agreement, it can be difficult to prove the agreement and enforce it. In the absence of written documentation, it may be difficult to determine what was agreed upon and what the terms of the agreement were.
In conclusion, while verbal agreements can be binding in certain circumstances, they are not always enforceable. It is important to be clear and specific when making a verbal agreement, and to ensure that the terms of the agreement are legally permissible and within the statute of frauds. Where possible, it is always advisable to put agreements in writing to avoid potential disputes and ensure enforceability.
