Remember, oral contracts are legal and valid, but you can better protect your interests by putting everything into writing. For the best results, consult a legal expert. If you enter into court proceedings on the basis of an oral agreement, a judge will review the evidence presented, including the testimony and all relevant documents. Unfortunately, judges do not have magical powers to determine who is telling the truth. If you try to reach an oral agreement, your testimony will be decisive and a judge will want to know what was agreed, when and why. The judges will also follow common sense and see if what you are saying seems credible. If the contract is verbal for one of the above, it is not enforceable. The same applies, under the Single Code of Trade (UCC), for the sale of goods worth more than $500.00. Be sure to review your state`s fraud laws or law if you are not sure if you need a written agreement or not. Apparently, the ancestral tradition of the handshake dates back to a ritual that gave both individuals the opportunity to ensure that the other did not hide a weapon. Over the years, this ritual has become many things, one of which remains the conclusion of an oral contract. Many clients have asked me whether such an agreement is valid or, in other words, legally binding under Quebec law? Sometimes an oral agreement is reached and the parties intend to record the conditions later in a document, but for whatever reason, this has not been done.
However, the oral agreement remains binding. Is an oral contract legal? In simple terms, yes. From a legal point of view, oral contracts can often be as valid as written contracts. You may be extremely difficult to regulate, but you should find comfort if you know that there are applicable state and federal laws that can help enforce such treaties and protect your legal rights. But of course, this is the safest way to put your contract in writing to protect both parties. Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. Once you agree to do something, people generally expect you to do it — but do you legally have to? The party wishing to implement the agreement has the difficult task of proving the terms of the agreement and the existence of an oral agreement. The good thing about a written agreement is that the terms are usually expressly defined in a document signed by all parties to the agreement.