Verbal Agreements in UK Law: What You Need to Know

In the UK, verbal agreements are legally binding and enforceable. Contrary to popular belief, a verbal agreement is just as legally binding as a written contract, but it can be more difficult to prove in court.

Verbal agreements are made between two parties and can cover anything from services to goods to personal relationships. However, without a written contract, there is no written evidence to support the agreement. This can lead to disagreements and disputes, causing both parties to lose out on what was previously agreed upon.

The law recognizes verbal agreements as a legitimate form of contract. However, under certain circumstances, such as for the sale of land or property, the agreement must be in writing.

Proving the Existence of a Verbal Agreement

Proving the existence of a verbal agreement can be challenging. Without a written contract, it can be difficult to prove what was agreed upon, leading to disagreements and legal disputes. Therefore, it is important to take steps to ensure the agreement is documented and can be easily proven in court.

One way to document the existence of a verbal agreement is to send a confirmation email or letter summarizing the terms of the agreement to the other party. This can serve as written evidence of the agreement.

Another option is to have a witness present during the verbal agreement and ask them to provide a statement confirming the agreement’s terms.

The Importance of Recording Verbal Agreements

It is highly recommended that individuals should document any agreements they make, whether verbal or written. While verbal agreements are legally binding, they can be difficult to enforce without proper evidence.

Recording the terms of a verbal agreement can serve as proof of the agreement’s existence. This can include writing down the agreement’s terms and getting the other party to confirm the accuracy of the document.

In the event of a dispute, having written evidence can be beneficial in court. It can also be advantageous in protecting yourself and your business from financial and legal risks.

In conclusion, verbal agreements are legally binding in the UK. However, it is important to document them to avoid misunderstandings and disputes in the future. If you are unsure about the legality of a verbal agreement, it is recommended to seek legal advice to ensure the agreement is legally enforceable.