What are the risks of relying on verbal agreements?

What are the risks of relying on verbal agreements?

Verbal agreements can lead to misunderstandings, lack of evidence, and difficulty enforcing terms. They are often hard to prove.

Can you give me an example of a situation where a verbal agreement caused problems?

Sure! Imagine two friends agree verbally to split the costs of a vacation. If one friend doesn't pay, the other has no proof to enforce the agreement.

How can I protect myself if I have to rely on a verbal agreement?

You can protect yourself by documenting the conversation, sending a follow-up email summarizing the agreement, or having witnesses.

Are there any situations where verbal agreements are acceptable?

Yes, in informal situations or when trust is established, verbal agreements can work. However, it's best to have written contracts for significant matters.