Mere Verbal Agreement: What It Means and Why It Matters
A mere verbal agreement is a type of agreement made orally between two parties without any written documentation. These agreements are usually made out of trust and are based on the spoken words and promises of each party. In some cases, they may be informal agreements made between friends or family members, while in other cases, they may be business agreements made between companies or contractors.
While verbal agreements may seem convenient and easy to make, they carry a significant risk for both parties. Without any written documentation, the terms of the agreement are often vague and open to interpretation. This can lead to misunderstandings and disputes down the line, particularly if there is no clear evidence to prove the agreed-upon terms.
Furthermore, if one party breaches the agreement, it can be challenging to hold them accountable without any written proof. This can put the other party at a significant disadvantage, especially if the dispute ends up in court.
So, why do people still make verbal agreements? Some may do so out of convenience or because they believe the other party is trustworthy. Others may simply be unaware of the risks involved with this type of agreement. However, regardless of the reason, it is essential to understand that verbal agreements are inherently risky and should be avoided whenever possible.
It`s always best to have any agreement in writing to ensure that all the terms are legally binding and agreed upon by both parties. This will provide a clear record of what was agreed upon, including any specific terms or conditions. A written agreement can also act as a reference point in case of any future disagreements or disputes.
In conclusion, a mere verbal agreement can be a risky proposition, and it`s always best to have any agreement in writing. This will provide a clear understanding of the terms and conditions, ensuring that both parties are on the same page. By taking this simple step, you can avoid misunderstandings and potential legal disputes, protecting yourself and your business from unnecessary risk.