In today’s world, contracts are an integral part of business operations. They are legal agreements that bind two or more parties to specific terms and conditions. While most contracts are in writing, some agreements are made orally, known as oral contracts. Oral contracts are enforceable under certain circumstances, and although they may not be as formal as written agreements, they are still legally binding.
So, why are oral contracts enforceable?
First and foremost, it is essential to understand that an enforceable contract requires certain elements, including an offer, acceptance, and consideration. An oral contract can fulfill these requirements just as a written contract does. The offer is made verbally, the acceptance is verbal, and consideration can be anything from goods, services, or money provided by both parties.
Another reason why oral contracts are enforceable is that they can be proven in court. Although they may not have the same level of evidence as written agreements, oral contracts can be enforced if the parties involved can provide evidence that the agreement existed. Proof can come in the form of witness testimony, email or text conversations, or other documentation that supports the parties` claims.
However, it is important to note that some contracts must be in writing to be enforceable. These include contracts for the sale of goods over a certain value, contracts that cannot be performed within one year, and contracts related to real estate. In these cases, an oral agreement alone will not be considered legally binding.
In conclusion, oral contracts are enforceable if they meet the necessary requirements, including an offer, acceptance, and consideration. They can be proven in court, which makes them a legitimate option for businesses and individuals who prefer not to use written contracts. However, it is crucial to know when a written contract is required to avoid any legal complications down the line. Regardless, oral contracts remain an essential tool for business negotiations and agreements.