When it comes to making agreements, many people assume that a written contract is the only way to ensure that it`s legally binding. However, verbal agreements can also be legally enforceable in the UK.
Verbal agreements, also known as oral agreements, are those that are made verbally between two or more parties, without any written documentation. While a written contract may provide more clarity on the terms and conditions of the agreement, verbal agreements can also be legally binding if certain requirements are met.
Firstly, both parties must agree to the terms of the agreement. This means that the terms must be clear and unambiguous, and both parties must have a clear understanding of what they are agreeing to.
Secondly, there must be an exchange of something of value, whether it`s goods, services, or money. This is known as „consideration“ and is a fundamental requirement for any legally binding contract, whether it`s written or verbal.
Lastly, there must be intention to create legal relations. This means that both parties must intend for the agreement to be legally binding, rather than just a casual conversation or a friendly agreement.
If these three requirements are met, a verbal agreement can be legally binding in the UK. In fact, many agreements are made verbally, such as agreements between friends, verbal job offers, or agreements made over the phone.
However, the main issue with verbal agreements is that they can be difficult to prove in court. Without any written documentation, it can be challenging to prove the terms of the agreement and the parties involved. This is why it`s always recommended to get any agreement in writing, even if it`s just an email or a text message.
In summary, a verbal agreement can be legally binding in the UK if the three requirements of agreement, consideration, and intention to create legal relations are met. Nonetheless, it`s always best to get any agreement in writing to ensure clarity and avoid any potential misunderstandings.