Suing for Verbal Agreement

Suing for Verbal Agreement: What You Need to Know

In the business world, verbal agreements are a common way of conducting deals and negotiations. However, what happens when one party fails to honor the terms of the verbal agreement? Can you sue for verbal agreement? The answer is yes, but it`s not always an easy process. Here`s what you need to know if you`re considering suing for verbal agreement.

Proving a Verbal Agreement

The first thing you should know is that proving a verbal agreement can be difficult. Unlike a written contract, there is no physical evidence of the agreement. However, that doesn`t mean it`s impossible to prove. You will need to provide evidence such as emails, text messages, or witnesses who can testify to the agreement.

Also, keep in mind that verbal agreements are legally binding in most states. If there is a clear agreement, and both parties intended to be bound by it, then the agreement is enforceable.

Statute of Limitations

Another consideration is the statute of limitations. In most states, the statute of limitations for suing for verbal agreements is between two to six years from the date of the breach. If you wait too long, you may lose your right to sue.

Additionally, some states require that the agreement be in writing if it involves real estate purchases or leases, or if the amount in question exceeds a certain threshold.

Benefits of a Written Contract

While verbal agreements can sometimes be enforced, it`s always better to have a written contract. A written contract is more detailed, and outlines the terms and conditions of the agreement. Having a written contract can help avoid misunderstandings or disputes later on. It also provides a clear record of what was agreed upon, which can be easily referred to if necessary.

If you`re going to enter into a verbal agreement, it`s a good idea to follow up with an email or text message confirming the terms of the agreement. This way, you have a written record of the agreement, which can be used as evidence in court if necessary.

In conclusion, while suing for verbal agreement is possible, it`s not always easy. Proving a verbal agreement can be challenging, and the statute of limitations varies by state. It`s always better to have a written contract, but if you do enter into a verbal agreement, be sure to have some form of written record to support your claim.