Contracts enforce business agreements and personal transactions. Whether you’re finalizing a business deal, agreeing on a service or settling the terms of an employment agreement, contracts are essential. Sometimes, agreements are made verbally rather than in writing. So, in this case, it’s normal to wonder what’s next if the other party fails to fulfill their end of the bargain.
Verbal contracts, or oral agreements, are legally binding in Texas. However, enforcing them can be more complicated than enforcing written contracts. The primary challenge lies in proving that the terms of the agreement existed and that both parties consented to them.
How to enforce a verbal contract in Texas
While Texas recognizes verbal contracts as legally binding, not all agreements qualify. The Texas Statute of Frauds requires specific contracts to be written to be enforceable, like those:
- Involving real estate transactions
- Contracts that will take more than a year to be completed
- Agreements to pay someone else’s debt
If your verbal agreement doesn’t fall into these categories, you may have grounds to sue for breach of contract. To successfully enforce a verbal contract in the Lone Star State, you must:
- Provide sufficient evidence that the agreement existed and that both parties understood and agreed to its terms
- Present evidence like witness testimonies, emails, text messages or any other documentation supporting the existence of the contract
Additionally, the behavior of the parties involved can also play a role in proving that a verbal agreement was in place. For example, if one party partially fulfilled their promise under the agreement, it may strengthen your case.
While it is possible to sue for breach of a verbal contract in Texas, it is essential to understand the challenges associated with proving such an agreement. Without a written document, the burden of proof lies heavily on you, where you must demonstrate that a contract existed and was breached.
If you are in a situation wherein a verbal contract has been violated and that scenario has caused you harm, working with a legal team can help you ascertain the best course of action. In future, you can also work with a legal time to formalize important agreements in writing.