When it comes to entering into legally binding contracts, many people assume that an agreement reached over the phone can carry the same weight as a written contract. While verbal agreements can still be legally binding in certain circumstances, there are important limitations to consider.
In general, contracts can be either written or oral (verbal). However, certain types of contracts must be in writing to be enforceable under the law, such as contracts for the sale of real estate or goods worth more than a certain amount. Additionally, some states require that contracts for services lasting longer than a certain period of time be in writing as well.
When it comes to verbal contracts, the difficulty can often be in proving the terms of the agreement. Unlike a written contract, which can be produced as evidence in court, a verbal agreement is based solely on the parties` recollection of the conversation. This can lead to disputes over what was actually said or agreed to. Furthermore, it can be challenging to provide evidence of a verbal contract if there were no witnesses or recordings of the conversation.
One important legal principle to consider when it comes to verbal contracts is the statute of frauds. This law requires that certain types of contracts must be in writing to be enforceable, as mentioned above. The purpose of this law is to prevent fraud and ensure that parties cannot be held to agreements they did not intend to make.
So, where does this leave contracts made over the phone? In general, a verbal agreement reached over the phone can be legally binding if all the necessary elements of a contract are present, such as an offer, acceptance, and consideration. However, it is always best to follow up a verbal agreement with a written contract that clearly outlines the terms and conditions of the agreement.
If you do find yourself in a dispute over a verbal contract reached over the phone, it can be helpful to gather any evidence you have, such as emails or texts with the other party, as well as any witness statements. Consulting with an attorney experienced in contract law can also be beneficial in determining your legal rights and options for resolving the dispute.
In conclusion, while verbal contracts can be legally binding in certain circumstances, it is always best to have a written contract whenever possible. If you do enter into a verbal agreement over the phone, make sure to follow up with a written contract or confirmation email to avoid any misunderstandings or disputes down the line.