When Are Verbal Contracts Enforceable?

Verbal Contracts

We often get questions about whether or not verbal contracts are enforceable in Oklahoma. Many people believe that all contracts must be in writing to be valid, but that is not always the case. Verbal contracts, also known as oral agreements, can be legally enforceable under certain conditions. Understanding when they hold up in court can help you avoid costly disputes.

Are Verbal Contracts Legal?

Yes, verbal agreements can be legally binding. To be enforceable, they must include the basic elements of any contract:

  • Offer and Acceptance – One party offers specific terms, and the other accepts them.
  • Consideration – Something of value is exchanged, such as money, goods, or services.
  • Mutual Consent – Both parties clearly agree to the same terms.
  • Capacity and Legality – Each party must be legally able to contract, and the subject matter must be lawful.

If these elements are present, the agreement can be enforced, even without a written document.

The Statute of Frauds

Some agreements must be in writing to be enforceable, according to the Statute of Frauds. These generally include:

  • Real estate sales contracts.
  • Leases longer than one year.
  • Agreements that cannot be performed within one year.
  • Promises to pay someone else’s debt.
  • Marriage-related contracts, such as prenuptial agreements.

If an oral agreement falls under one of these categories, courts generally cannot enforce it unless it is in writing.

Challenges in Proving Verbal Contracts

The biggest issue with oral agreements is proving their terms. Because there is no written record, disputes often become one person’s word against another’s. Courts may consider:

  • Witness testimony.
  • Emails, text messages, or other communications referencing the deal.
  • Evidence of payment or partial performance.

Even though oral contracts can be enforceable, they can add complexity to breach of contract situations.

Creek County Business Lawyers

Verbal contracts can be legally enforceable if they meet basic contract requirements and don’t fall under categories requiring a written agreement. However, proving them can be challenging, and relying on them can lead to disputes. Our team at Creek County Attorneys can help you through the process and advocate for you. Call us at 918-209-3709 for a free and confidential consultation or ask a legal question here.