Texas is unique in many ways — including the fact that many people who dwell here still feel that their word is their bond. However, are verbal contracts really binding?
They may be. Keep in mind that some agreements must be in writing (such as the sale of real estate) to be binding; however, this isn’t the case for all situations.
What does the law say?
The Uniform Commercial Code and other state statutes dictate the verbal agreement laws in Texas.
While you can enforce verbal contracts, it’s worth understanding that this type of litigation is often complex. It’s also typically expensive to file a lawsuit and prove the verbal contract existed. However, if you can successfully do this, you can achieve a successful outcome, and Texas courts may rule in your favor.
What makes a verbal agreement valid and enforceable?
To have a verbal agreement enforceable in court, it must possess all elements of a valid contract. You must also prove a breach occurred. Usually, to prove this, you will use any communication between you and the other party and other evidence related to the creation of the verbal agreement.
Is it best to put your contract in writing?
While verbal contracts are enforceable in many situations in Texas, they can still be difficult and expensive to defend. Because of this, if you are making an agreement with someone, for anything, you should put it in writing. Having a written contract makes things much clearer and ensures you can take legal action if a breach occurs.
Defending your verbal contract in Texas
If you have a verbal contract, you do have something that is enforceable in court if a breach occurs. While this is true, it’s still smart to have your agreements in writing, which will prevent any disagreements regarding the worth of the verbal agreement or if it existed between you and another party.