Oral contracts can be valid but tricky

| Jun 21, 2021 | Business Law |

When people in Georgia imagine contracts, they often think of formal documents. However, that’s not the only type of contract. Some of them, known as oral contracts, are spoken agreements.

While oral contracts can be legally valid, it might be tough to prove that you made an oral contract. Anyone with experience in business litigation can tell you tales of oral contracts gone wrong. There are also situations in which oral contracts are not legally binding.

Validity of oral contracts

Some contracts must be in written form. As one example, real estate contracts are only valid in writing. On the other hand, many other contracts can be purely oral.

In an ideal situation, everyone involved is trustworthy and carries out their responsibilities. You only need to establish that a contract is legally valid if somebody breaches it. If you didn’t write anything down, an oral contract dispute could become a tricky situation. The other party could even claim that no contract existed.

Proving the existence of an oral contract

Multiple things might help you take legal action to enforce an oral contract or receive damages. These include:

  • A written document with the terms you agreed to in the oral contract
  • Witness testimony
  • Records establishing that at least one party acted on the contract
  • Informal documentation like emails and receipts

If you and the other party created the oral contract alone and no documentation or witnesses exist, you might have a tough time getting anywhere in court. Regardless of how much you trust the other party, it’s wise to follow up an oral contract with a written version. If somebody has breached an oral contract with you, you might benefit from contacting a business litigation attorney.

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