Verbal contracts can refer to oral agreements or any contract expressed in words, whether written or oral. Confusion arises from using “verbal” to describe spoken words. Enforceability varies, and written contracts are easier to enforce. People accept contracts through actions, such as visiting a service provider, implying an intention to pay.
There are at least two different definitions of the term “verbal contract”. In a sense, people use it to describe an oral contract, where people make a verbal agreement, but that agreement isn’t formalized with a written contract. In another, more technical sense, a verbal contract is any contract expressed in words, whether written or oral. There are other types of contracts that people can accept by action or not, without any kind of verbal agreement.
The confusion with the sense of “oral contract” comes from the fact that many people use the word “verbal” to describe spoken words. Indeed, any written contract is also a verbal contract, because it contains words. So when people are talking about a verbal agreement, they should really use “oral agreement” to make sure people understand what they mean, otherwise someone might believe the agreement was written.
In a verbal contract, the expectations of the contract are clearly set out and all parties have agreed to the terms. Some written verbal contracts are made with basic forms that provide blanks for people to fill in specifics, while in other cases they can be made by a lawyer to meet the needs of a particular situation. The enforceability of such a contract varies depending on whether it is oral or written, the terms of the contract and other factors.
When a verbal breach of contract occurs, there are several potential methods of redress. If the contract is oral, it can be difficult to enforce without a reliable witness, and ideally there should be several. Written contracts are easier to enforce because there is a clear record of the agreement and it cannot be challenged. People who aren’t sure whether an action will violate a contract should ask a professional. An attorney can quickly review a contract to see if a particular action is permissible or suggest a renegotiation of the contract to make an action permissible.
People are actually accepting contracts all the time in their actions, without signing a single piece of paper or verbally agreeing to anything. For example, when someone visits a service provider such as a doctor or hairdresser, accepting the services implies that the customer intends to pay, and the service provider can sue if the customer fails to do right. Similarly, when someone calls a plumber or electrician, consenting to perform the service also implies an intention to pay.
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