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Legal Implications of Verbal Agreement

With the increasing prevalence of digital communication, it’s easy to forget the importance of verbal agreements in legal matters. Verbal agreements are agreements made solely through spoken words, rather than through written contract or documentation. Although verbal agreements can be legally binding, they can also be difficult to prove in court and can lead to a host of legal implications. In this article, we’ll explore some of the legal implications of verbal agreements.

Enforceability in court

One of the main legal implications of verbal agreements is their enforceability in court. If a dispute arises over the terms of a verbal agreement, it can be difficult to prove that an agreement existed between the parties involved, and what the terms of the agreement were. For example, if an employee claims that they were promised a raise by their employer, but the employer disputes this, it can be challenging to prove the terms of the verbal agreement.

Statute of frauds

Another legal implication of verbal agreements is the statute of frauds. The statute of frauds is a legal principle that requires certain contracts to be in writing in order to be enforceable. For example, contracts for the sale of goods over $500, contracts that cannot be performed within one year, and contracts for the transfer of real property must be in writing. Verbal agreements in these cases are not enforceable.

Unclear terms

Verbal agreements can also lead to legal implications when the terms of the agreement are unclear. Without a written contract or documentation of the agreement, it can be challenging to determine the exact terms of the agreement. This can lead to disputes and legal battles, as parties may have different interpretations of the agreement.

Burden of proof

In legal disputes over verbal agreements, the burden of proof is on the party claiming that an agreement existed. This means that the party claiming the agreement must provide evidence that the agreement was made and what the terms of the agreement were. This can be challenging without written documentation, and can lead to a situation where the party claiming the agreement is unable to prove that it existed.

Conclusion

In conclusion, verbal agreements can have a range of legal implications. While they can be legally binding, they can also be difficult to enforce in court, and can lead to disputes and legal battles. It is always best to have a written contract or documentation of any agreement to avoid any potential legal issues. If you’re unsure about the legal implications of a verbal agreement, it’s always best to seek legal advice.

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