What are the limits of verbal contracts?

What are the limits of verbal contracts?

Verbal contracts can be legally binding, but they often lack clarity and proof. Their enforceability varies by jurisdiction.

Can you give me an example of a verbal contract?

Sure! An example would be if you agree to sell your bike to a friend for $100 over a phone call. That's a verbal contract.

What makes a verbal contract difficult to enforce?

The main challenges are proving the terms and existence of the agreement, as well as potential misunderstandings between parties.

Are there situations where verbal contracts are not valid?

Yes, certain agreements, like those involving real estate or lasting longer than a year, typically need to be in writing to be enforceable.

How can I protect myself when entering a verbal contract?

To protect yourself, document the agreement in writing afterward, keep records of communications, and ensure both parties understand the terms.