Legal Actions for Breaking a Verbal Contract: Proving and Enforcing Terms

Contracts can take many forms, whether they are written in detail or made verbally through casual conversation. Both forms of contracts are legally binding and enforceable, but the process of proving and enforcing the terms can differ significantly. This article delves into the legal actions that can be taken if someone breaks a verbal contract and discusses the challenges in proving its terms.

Understanding the Enforcement of Verbal Contracts

Contracts are agreements between parties stipulating terms and conditions that both sides agree to abide by. According to the law, verbal contracts are just as enforceable as written ones. Whether an agreement is documented in writing or passed through a verbal exchange, both parties must offer and accept a proposal, agree on terms, and provide something of value (consideration) for the contract to be valid.

Ensuring Evidence of the Contract's Existence

The primary challenge in proving a verbal contract is establishing its existence. Unlike written contracts, verbal agreements lack a tangible, definitive document to reference. This is where the importance of documentation and witness testimony comes into play. Contemporary records such as emails, text messages, and physical notes can serve as evidence of the agreement between parties.

Proof and Burden of Evidence

The party attempting to enforce a verbal contract must provide sufficient evidence to demonstrate that a contract was established and that its terms were clearly communicated. This can be challenging, as the burden of proof is high. Witnesses can play a critical role in corroborating the terms discussed, but their recollections may differ.

Case Studies in Verbal Contracts

Despite the challenges, many businesses rely on verbal agreements, especially in the creative and media industries. For example, if a content creator agrees to produce video content for a client and later the client decides to terminate the project, the content creator might argue that payment is not due until the project is completed. In such a scenario, the content creator would have to prove the terms of the agreement through evidence like previous communications or witness statements.

Remedies for Breach of Verbal Contracts

When a verbal contract is breached, the non-breaching party has the right to seek various remedies. These remedies may include:

Specific Performance: Forcing the breaching party to fulfill their part of the contract. Money Damages: Receiving compensation for losses incurred due to the breach. Injunctions: Stopping the breaching party from taking actions that would further harm the non-breaching party.

It is important to note that the effectiveness of these remedies largely depends on the availability of evidence that proves the terms and conditions of the verbal contract.

Consequences of Breaking a Verbal Contract

Similar to a written contract, the consequences of breaking a verbal contract can be severe. The breaching party may face:

Financial penalties and compensatory damages. Legal action, such as suing for breach of contract. Reputation damage and potential loss of future business relationships.

For example, a legal firm might collect on an account where a verbal agreement was made, even in the absence of a written contract. Documentation of previous communications, payment records, and witness testimony can be crucial in these situations.

Conclusion

Verbal contracts, while legally binding, can present challenges in proving and enforcing their terms. However, with proper documentation, witness evidence, and a clear understanding of the legal principles, it is possible to take effective legal action if a verbal contract is broken. A detailed record of communications, evidence of consideration, and a well-documented timeline of the agreement can significantly enhance the likelihood of successful enforcement.