(1) All agreements should be written down in a properly developed contract. Oral agreements should be avoided at all costs. Without the testimony of the agreement, the aunt could have 200 dollars and a decent relationship with her nephew. An oral contract is a kind of business contract that is described and agreed upon by oral communication, but not written. While it may be difficult to prove the terms of an oral contract in the event of an infringement, this type of contract is legally binding. Oral contracts are often wrongly referred to as oral treaties, but an oral contract is really any contract, since all contracts are written linguistically. In the case of oral contracts, they generally have a shorter limitation period than the time limit for written contracts. This is due to the need for more recent evidence and testimony. Without a written agreement, it is often the word of one party against another. We therefore recommend avoiding oral chords. However, if you enter one, we advise you to send an email or letter to the other party confirming the agreed terms.
The more written documentary evidence you have, the better your chances of obtaining oral agreement. There can be serious consequences for breach of contract, whether oral or written. Therefore, if you are unsure of the terms and do not fully understand your rights or obligations, we recommend that you get legal advice before the contract is concluded. To win the case, the aunt must prove with evidence that her nephew lent the money with the intention of repaying it, while the nephew must prove that he did not accept. Without the documentation of the agreement, it will be a matter of er-she-said. In the end, it is a judge who decides which case is most likely of the party. Many oral contracts are legally binding, but the possibility that a party will not respect its commitment still exists; That`s why people often prefer to make their deals in writing. 2. In case you can`t not make an oral agreement, make sure you keep correspondence records and notes on what has been agreed, and then follow the other party with an email or letter confirming the terms. A verbal agreement is a contract, even if it is not available in writing.
Provided the contract is valid, it is a binding agreement between two parties. While some oral contracts are considered enforceable, they are problematic and complicated.