The Validity of Oral Agreements of Sale: What You Need to Know
When it comes to buying and selling goods or services, it`s common to think that a written contract is necessary to make the agreement official and legally binding. However, it`s worth noting that oral agreements of sale can also hold validity under certain circumstances.
The law recognizes that oral agreements of sale, also known as verbal contracts, are legally binding as long as they meet specific requirements. Here`s what you need to know about the validity of oral agreements of sale.
Establishing the Terms of the Agreement
For an oral agreement of sale to be legally binding, the parties must have agreed on the essential terms of the transaction. This means that the terms must be clear and specific enough to determine what the parties agreed to. The essential terms include the identity of the buyer and seller, the goods or services being sold, the price, and the delivery date.
If there is no agreement on one or more of the essential terms, the oral agreement may not be enforceable. The courts cannot fill gaps in the agreement or imply terms that the parties did not agree to. Therefore, it`s essential to ensure that all details are discussed and agreed upon before entering into an oral agreement of sale.
Proof of the Agreement
Proving the existence of an oral agreement can be challenging since there is no written record of the transaction. However, there are ways to establish the agreement`s existence and its terms. One way is to present evidence of the parties` conduct before and after the agreement. For instance, if the buyer paid the seller, it`s a reasonable inference that the transaction occurred.
Another way is to present evidence of conversations, emails, or text messages that support the existence and terms of the agreement. The parties can also present witnesses who were present during the negotiation and can testify to the agreement`s existence and terms.
Enforcing the Agreement
If one party breaches the oral agreement of sale, the other party may seek legal remedies. However, enforcing an oral agreement can be challenging without a written document to refer to. The burden of proof is on the party seeking to enforce the agreement. The party must present admissible evidence that proves the agreement`s existence, terms, and the other party`s breach.
In conclusion, oral agreements of sale can be legally binding as long as the parties agree on the essential terms, the existence of the agreement can be proven, and the parties can enforce the agreement. However, it`s always advisable to have a written contract to avoid misunderstandings and disputes. Written contracts provide clarity and can be used as evidence in case of a dispute.