When it comes to legal disputes between two parties, arbitration has become an increasingly popular option. Arbitration is a legal process where a neutral third party, the arbitrator, hears both sides of a dispute and makes a binding decision. In order for an arbitration agreement to be valid, it must meet certain requirements. One of those requirements is that the parties must agree to the arbitration process.

But what happens when the agreement to arbitrate is not in writing? Can a verbal agreement be sufficient to establish the parties` intent to arbitrate the dispute? The answer is yes.

Courts have recognized that a verbal agreement to arbitrate can be just as binding as a written agreement, as long as the parties` intent to arbitrate is clear. In fact, some courts have held that verbal agreements to arbitrate are even more favored than written agreements.

The key to enforcing a verbal arbitration agreement is proving the parties` intent to arbitrate. This can be done through evidence such as emails, text messages, and witness testimony. For example, if two parties had a conversation where they clearly agreed to resolve any disputes through arbitration, and there are witnesses who can testify to this conversation, a court may enforce the verbal agreement to arbitrate.

However, it is worth noting that proving a verbal agreement to arbitrate can be more difficult than a written agreement. Without a written agreement, there can be disputes over what was actually agreed upon. That is why it is always recommended to have any agreements regarding arbitration in writing.

In conclusion, a verbal agreement to arbitrate can be just as valid as a written agreement, as long as the parties` intent to arbitrate is clear. However, proving a verbal agreement can be more difficult, so it is always best to have any arbitration agreements in writing. As always, it is important to consult with a legal professional before entering into any legal agreements.