Many people believe that verbal agreements are just as binding as written contracts. While Texas law does not recognize some oral contracts, relying on a handshake deal can lead to significant legal complications as our Arlington, TX business lawyer who has received a 10.0 rating from Avvo can explain. At Brandy Austin Law Firm, we help individuals and businesses protect their interests by ensuring their agreements are legally binding.
Are Verbal Contracts Legally Binding In Texas?
In Texas, verbal contracts can be legally enforceable – if they meet specific conditions. A valid contract must include:
1. An Offer – One party proposes an agreement
2. Acceptance – The other party agrees to the terms
3. Consideration – Something of value is exchanged, such as money, goods, or services
4. Mutual Agreement – Both parties understand and agree to the terms.
However, certain agreements must be in writing under the Texas Statute of Frauds, including:
– Real estate sales
– Leases longer than one year
– Agreements that cannot be completed within one year
– Contracts for the sale of goods over $500
Essentially, it is best to have a contract versus operating as a business without written contracts.
The Risks Of Verbal Contracts
Even when verbal agreements are legally valid, they are often difficult to prove in court. Common risks include:
– Disputes Over Terms: Without written documentation, parties may disagree on key details
– Lack Of Evidence: A written contract provides a clear record of the agreement, while verbal deals rely on memory and witness testimony – Breach Of Contract Claims: Enforcing a verbal agreement can be challenging if one party fails to uphold their end of the deal.
How To Protect Yourself
If you must rely on a verbal agreement, take these steps to strengthen your position:
– Get Written Confirmation: Even an email or text summarizing the agreement can help.
– Have Witnesses: A third party who heard the conversation can support your claim
– Follow Up In Writing: Sending a follow-up message outlining the terms can provide clarity and serve as evidence.
When To Seek Legal Help
If you’re involved in a dispute over a verbal contract, legal assistance can make a significant difference. We help clients assess their options and fight for their rights. Whether you need to enforce an agreement or defend against an unfair claim, we provide strategic guidance to protect your interests. If you are just starting a business, we can also provide more advice like this to help avoid future litigation.
While verbal contracts may seem convenient, they come with considerable risks. To avoid misunderstandings and legal battles, always get agreements in writing. If you have questions about contract disputes or need help drafting a legally sound agreement, contact Brandy Austin Law Firm today to speak with one of our lawyers who has been rated by Super Lawyers.
