Are verbal agreements binding?


Quick Answer

Chron.com notes that verbal agreements are often binding, although they are more difficult to enforce than written agreements due to the lack of documentation. However, the statute of frauds requires that certain types of agreements be in writing and signed by all involved parties.

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Are verbal agreements binding?
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Full Answer

According to Cornell University, when an agreement involves marriage, real estate, goods worth more than $500 or contracts lasting more than one year, the statute of frauds requires that the agreement be in writing. However, Lawnix points out that even verbal agreements that fall into one of the aforementioned categories can be enforced in court if one of the parties reasonably relied on promises made in the agreement to his detriment.

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