When it comes to the sale of goods or services, the existence of a written agreement is often seen as necessary to establish the terms of the transaction. However, in certain circumstances, an oral agreement can be just as legally binding.
The general rule is that a contract can be formed through both written and oral communication. In fact, it is common for many businesses to make agreements orally, especially in informal situations or transactions.
In an oral agreement to sell, the parties involved make a verbal agreement on the terms and conditions of a sale. This could be in a conversation, telephone call, or email. While it may seem less formal than a written agreement, it is still legally binding.
The validity of oral agreements to sell varies depending on the jurisdiction. In most cases, the parties involved must have an offer, acceptance, and consideration (something of value exchanged between the parties) to form a contract. Moreover, some states require that the terms of the oral agreement be specific and clear for it to be enforceable.
One of the benefits of an oral agreement to sell is that it can speed up the transaction process. When parties are in a hurry to complete a sale, an oral agreement can get the job done quickly without waiting for written documents to be drafted and reviewed.
However, there are risks involved in an oral agreement. Without a written document, it can be challenging to prove the terms of the agreement. Memory can fade, and parties may not remember the exact details of their discussion. Additionally, each party may have their own interpretation of the agreement, leading to disputes and disagreements.
The best practice is to always have a written contract, even if the parties have already made an oral agreement. A written document provides a clear and detailed record of the transaction and protects both parties in case of disputes or misunderstandings.
In conclusion, while oral agreements to sell are legally binding, it is always advisable to have a written contract. It may take more time, but it provides a clear and detailed record of the transaction, protecting both parties in case of disagreements or misunderstandings.