Verbal Agreements in the State of Florida: What You Need to Know

Verbal agreements, also known as oral agreements, are common in Florida. They are agreements made without any formal written documentation. In some cases, verbal agreements can be legally binding, but in others, they are not.

Here is what you need to know about verbal agreements in the state of Florida.

When Are Verbal Agreements Legally Binding?

Under Florida law, verbal agreements are generally enforceable, except for certain types of contracts. If the terms of the agreement can be proven and the parties intended to be bound, the verbal agreement is considered legally binding.

The following contracts must be in writing to be enforceable:

– Contracts for the sale of real estate

– Contracts that cannot be performed within one year

– Contracts for the sale of goods worth $500 or more

– Contracts for the transfer of property after death (wills and trusts)

– Contracts for the transfer of intellectual property rights

It is important to note that even if a contract falls under one of the above categories, it can still be partially enforceable if the parties have partially performed the terms of the agreement.

How Can You Prove a Verbal Agreement?

If you want to enforce a verbal agreement, you need to prove its existence and the terms of the agreement. Here are some ways to prove a verbal agreement:

– Witnesses: If someone else was present when the agreement was made, they can testify to the terms of the agreement.

– Emails or text messages: If you have any emails or text messages that discuss the terms of the agreement, they can be used as evidence.

– Performance: If the other party has partially performed the terms of the agreement, this can be used as evidence that the agreement exists.

What Are the Risks of Verbal Agreements?

While verbal agreements can be legally binding, they do come with risks. Without a written contract, it can be difficult to prove the terms of the agreement if a dispute arises. The parties may have different recollections of what was agreed upon, which can lead to conflicts.

Additionally, verbal agreements do not provide a clear record of the terms of the agreement. This can make it difficult to enforce the agreement, especially if the parties disagree on what was agreed upon.

Final Thoughts

While verbal agreements can be legally binding in Florida, it is always best to have a written contract. Written contracts provide a clear record of the terms of the agreement and can help avoid disputes in the future.

If you do enter into a verbal agreement, make sure to keep a record of any correspondence related to the agreement. This can include emails or text messages that discuss the terms of the agreement.

Overall, it is important to be aware of the risks and limitations of verbal agreements when doing business in Florida. By taking the right precautions, you can help ensure that your agreements are legally binding and enforceable.