How Strong Is a Verbal Agreement in Court?

Verbal agreements occur all the time. They can fall apart, however, when disagreements arise about what the agreement entailed or when one party fails to follow through as promised. That is why most important contracts are reduced to writing. Some types of agreements must be in writing to be enforceable in court.

Real Estate

• An oral agreement for sale of land is not a strong agreement and would not likely be upheld in court. According to the common law rule of the Statute of Frauds, agreements for the sale or transfer of land must be in writing to be enforceable by law.

Sale of Goods

• An oral agreement for the sale of goods valued at more than $500 might be enforced in court under certain conditions, but under the Uniform Commercial Code, the general rule is that these agreements must be in writing to be enforceable.

Contracts

• An oral agreement to do something that cannot be performed within one year will not likely survive a challenge in court. The Statute of Frauds mandates these agreements must be in writing. Examples of this type of contract might be a promise to make a payment on a specific date in the future, more than one year from the date of the agreement.