Contracts are the foundation of business law. For most transactions and agreements, these are written on paper and signed by all parties involved. In some scenarios, though, it’s possible to do business with a verbal contract. Here is what you should know about making agreements without writing down the terms. 

Are Verbal Contracts Legally Binding?

For a verbal contract to be legally binding, a few elements must exist. First, one party must extend some kind of offer, and the other must accept it. This offer and acceptance must require both parties to surrender something of tangible value. Additionally, both parties must be aware of the agreement and its terms at the time that it is established. Finally, they must be of sound mind when entering into it. 

How Do You Enforce a Verbal Contract?

Although verbal contracts are legally binding, enforcing them can be challenging. If you entered into a verbal contract with another party but they violated its terms, it is wise to seek counsel from a business law attorney. Your lawyer will attempt to enforce the agreement by proving the elements mentioned above. Fortunately, even if the contract was not written down, there may be evidence that it was created. If there was some exchange of goods or services before its terms were violated, for example, records, receipts, or invoices detailing the exchange can serve as proof. 

If you need help drafting written contracts—or enforcing a verbal contract—turn to Kratovil Law Offices, PLLC in Charles Town, WV. This firm is led by a seasoned business law attorney who has more than four decades of experience in the legal field. Their strategic lawyers also assist clients with bankruptcy, estate planning, personal injury claims, and criminal defense. To reach out and schedule a free consultation with a business law attorney on their team, call (304) 728-7718 or visit their website.