There are times when you might have agreed to something verbally. However, you may not be sure whether verbal agreements are legally binding or enforceable. This article will explain what qualifies as a verbal agreement. It will unpack the factors determining enforceability and set out steps you can take to reinforce verbal agreements. <\/p>\n\n\n\n
A verbal agreement is when two parties agree to something through spoken communication instead of writing it down. As there is no written document<\/a>, the only proof of the agreement is what the parties said to each other.<\/p>\n\n\n\n For example, you might verbally agree to supply Company A with $10,000 worth of merchandise every month for one year. In return, Company A agrees to pay you at the start of each month and sets the start date as January. Even without a written contract, this agreement may still be legally enforceable if it contains the key elements of a binding contract, such as:<\/p>\n\n\n\n As verbal agreements rely on what was said, they depend heavily on trust and clear communication between the parties<\/p>\n<\/div>\n\n\n\n In New Zealand, verbal (oral) agreements can be legally binding if they include the key elements of a contract.<\/p>\n\n\n\n The law<\/a> generally treats your verbal agreement the same as a written contract. However, you may find it harder to prove or enforce because you must rely on what you and the other party remember or believe was agreed.<\/p>\n\n\n\n Unlike written contracts, which give you a clear record of the terms, verbal agreements depend on oral evidence and the credibility of the parties<\/a>. As a result, it may be difficult for you to show exactly what was agreed.<\/p>\n\n\n\n Your verbal agreement may also miss important details or processes that are usually included in written contracts. This can create uncertainty and increase the risk of disputes if problems arise.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
Enforceability in New Zealand <\/h2>\n\n\n\n