When it comes to business dealings, verbal agreements and promises are often made between parties. But what happens when one party fails to fulfill their promise? Is a verbal promise considered a contract?
The short answer is yes. A verbal promise can be considered a contract, although it may be harder to enforce than a written agreement. In legal terms, a contract is an agreement between two or more parties that creates an obligation to do or not do something. This agreement can be made verbally, in writing, or implied through actions.
Verbal agreements are just as binding as written contracts. However, proving the terms of the agreement can be difficult. With a written contract, the terms are clearly outlined and can be easily referred to if a dispute arises. In contrast, a verbal agreement relies solely on the word of the parties involved and any witnesses present.
In many cases, verbal agreements are enforceable. For example, if you hire a contractor to renovate your kitchen and they promise to complete the work within a certain timeframe and budget, that promise is a verbal contract. If they fail to complete the work on time or exceed the budget, you can take legal action to hold them accountable. However, without written proof of the agreement, it may be harder to prove the exact terms of the contract and the obligations of each party.
Verbal contracts are most commonly used in day-to-day interactions, such as when buying goods or services from a vendor or entering into a personal agreement with someone. However, when it comes to formal business dealings, it is always best to have a written contract. This helps to clarify the terms and expectations of the agreement, and reduces the risk of miscommunication or misunderstandings.
In conclusion, a verbal promise can indeed be considered a contract. However, without written proof, enforcing the terms of the contract may be more difficult. To avoid any potential issues, it is always best to have a written agreement in place for any business dealings.