Is A Verbal Agreement Legally Binding?

Miami business lawyer Brett Trembly explains that, in certain circumstances, verbal agreements can be legally binding.

Many of our clients have heard the term “read the fine print”. It refers to understanding all the terms of a written contract and having the means to negotiate on any clause. The business may ask if a verbal agreement is legally binding, however, compared to written agreements. 

What Is A Verbal Agreement?

A verbal agreement, also known as an oral contract, is when two partners decide to make a deal without drawing it up as a written contract. Depending on the state you live in, this could be a phone call, an in-person meeting, or telecommunications.

Usually, the deal requires both parties to agree. If for example, a game show host tells the contestants that they will win ten thousand dollars if they can bake a great cake and impress the judges, that would constitute a verbal agreement even if the cameraman wasn’t taping. 

If a lawyer during a television interview says that he will pay ten thousand dollars for someone to disprove or prove a client’s alibi, however, that is rhetorical and he is not actually making an offer. This was a real case that played out in court, and the student plaintiff lost.

Verbal Agreement Laws 

An agreement will become a verbal contract if the following elements are included: an offer, acceptance, consideration, competency, and legality. A transaction and the other party agreeing to the terms must be present. 

Both parties must benefit from this deal, which contributes to consideration. In terms of competency and legality, both parties must be over eighteen and the agreement must hold up in court. 

Most importantly, the burden of proof will fall on the plaintiff to prove that the contract happened and both parties agreed. The terms above must be presentable to the court, which could be anything from phone records, to meeting logs.

Verbal Agreements in Florida

In the state of Florida, there is a statute of limitations of one to four years on filing suit on a verbal agreement. Each is case-specific, and it is better to sue for breach of contract sooner rather than later. Make sure that all of the elements listed above are presentable in court. If your goods are illegal, or the other party was a minor or not of sound mind, then the agreement is rendered null and void. 

If the party has done overt acts on behalf of the other, such as incurring debt through a transaction, then that is legally binding. They must have come to an actual agreement, and the plaintiff must be able to provide evidence of the overt act in court. 

Improve Your Oral Agreements With Trembly Law

The Trembly Law firm is one of the foremost in business legal matters. We want to ensure that all of our South Florida clients have the necessary expertise to understand verbal and written agreements, as well as to honor them. 

Reach out to us today to get prime legal advice. Trembly Law is ready to answer all of your questions with your first consultation.