Verbal agreements in PA – Knowing your rights

Verbal agreements, as the name suggests, are agreements made verbally between two or more parties. These types of agreements are quite common in personal and business dealings, and they are often used in situations where a written contract is not necessary or not feasible. However, despite their common usage, many people are unsure about the legal validity and enforceability of verbal agreements.

In Pennsylvania, verbal agreements are generally enforceable, but the rules regarding their formation and enforcement can be complex. Here are some things to keep in mind if you find yourself in a verbal agreement in PA:

Elements of a verbal agreement

In general, a verbal agreement is considered legally binding if it contains the following elements:

Offer: One party makes an offer to the other party.

Acceptance: The other party accepts the offer. This can be done verbally or through conduct.

Consideration: Each party promises to provide something of value to the other party. This is necessary in order for the agreement to be legally binding.

Capacity: Each party must have the legal capacity to enter into the agreement. This means that they must be of legal age, of sound mind, and not under duress.

Mutuality: Both parties must agree to the same terms of the agreement.

Enforcing a verbal agreement

If one party fails to perform their obligations under the verbal agreement, the other party may have legal options for enforcing it. However, enforcing a verbal agreement can be difficult, as there is often a lack of clear evidence of what was agreed upon.

One way to strengthen your case in court is to gather any evidence that supports your position. This could include correspondence, emails, text messages, or any other documentation that shows that the agreement existed and what the terms were.

Another important factor is the credibility of witnesses who can testify about the terms of the agreement. This could be another party who was present at the time the agreement was made or someone who is familiar with the parties and their dealings.

It is worth noting that there are some types of contracts that must be in writing to be enforceable, such as contracts for the sale of real estate or contracts that cannot be performed within one year. If you are unsure if your verbal agreement falls into one of these categories, it is important to consult with a lawyer.

Conclusion

Verbal agreements can be a convenient way to make deals, but they are not always the best option. If possible, it is always recommended to have a written contract that clearly outlines the terms of the agreement. If you do enter into a verbal agreement, make sure to follow up with an email or confirmation letter that summarizes the agreement and confirms the terms.

In the event that a dispute arises, it is important to consult with a lawyer who can advise you on your rights and help you pursue any legal remedies that may be available to you. With the right approach, you can protect your interests and ensure that your verbal agreements are legally enforceable.