Do verbal contracts hold up in court?
Yes, verbal contracts can hold up in court, if a court determines there is sufficient evidence to prove the existence and terms of a binding agreement.
If one party breaches a verbal contract and the wronged party sues, the legal outcome depends on a number of factors, including:
- The specific terms of the verbal agreement
- The evidence available to support the claim
- The applicable laws in the jurisdiction where the dispute occurred
As stated above, a verbal contract can be enforceable under the law, just like a written agreement. But, proving the terms of a verbal contract is more challenging than proving a written one because there is no physical document that outlines the agreement terms.
Suppose the wronged party can provide sufficient evidence to support their claim that a verbal contract existed and that the other party breached that agreement. In that case, they may be able to win a lawsuit and receive damages or other legal remedies.
The evidence used to support a claim may include:
- Witness testimonies
- Correspondence or other documentation that refers to the verbal contract
- Any actions taken by either party that are consistent with the claimed contract terms