Verbal Contract Law California
Verbal Contract Law in California: What You Need to Know
When it comes to business agreements, many people assume that written contracts are the only legally binding option. However, verbal agreements can also hold legal weight in the state of California. If you`re considering entering into a verbal contract, or if you`ve already done so and need to understand your rights and obligations, it`s important to have a basic understanding of California`s verbal contract law.
What is a Verbal Contract?
A verbal contract is an agreement made solely through spoken words, without any written documentation. In California, verbal contracts can be enforced in court under certain circumstances. However, it`s important to note that certain types of contracts must be in writing to be valid, including contracts for the sale of real property, contracts that cannot be performed within one year, and contracts for the sale of goods over $500.
Enforceability of Verbal Contracts in California
In California, a verbal contract is generally enforceable if it meets the following requirements:
1. Mutual agreement – Both parties must agree to the terms of the contract.
2. Consideration – There must be an exchange of something of value between the parties, such as goods, services, or money.
3. Competency – Both parties must have the legal capacity to enter into a contract, which means they must be of legal age and mentally competent.
4. Clear terms – The terms of the contract must be clear and specific enough to be enforceable.
Proving the Existence of a Verbal Contract
If a dispute arises over a verbal contract, it can be difficult to prove its existence without written documentation. However, there are several types of evidence that can be used to prove the existence of a verbal contract, including:
1. Witnesses – If there were witnesses present when the contract was made, they can testify to the agreement.
2. Emails or text messages – If there were any written communications between the parties that reference the agreement, they can be used as evidence.
3. Performance – If one party has already performed under the terms of the contract, this can be used as evidence of its existence.
Enforcing a Verbal Contract in California
If you need to enforce a verbal contract in California, you can file a lawsuit in civil court. However, keep in mind that there is a two-year statute of limitations for enforcing a verbal contract in California. This means that you must file your lawsuit within two years of the breach of the contract.
Conclusion
While written contracts are generally preferred for their clarity and enforceability, verbal contracts can also hold legal weight in California under certain circumstances. If you`re considering entering into a verbal contract, or if you`re already in one and need legal assistance, it`s important to consult with a qualified attorney who specializes in contract law. With a basic understanding of California`s verbal contract law, you can protect your rights and obligations when entering into any business agreement.