Verbal Contract Law Missouri

Verbal Contract Law in Missouri: Understanding the Basics

When it comes to business deals or agreements, contracts are essential. However, not all contracts are written down on paper. In some cases, a verbal agreement may be made instead. But how valid are verbal contracts, and what protections does Missouri law offer?

Under Missouri law, verbal contracts are legally binding and enforceable. This means that when two parties agree to a deal verbally, they are entering into a contract that is just as valid as a written contract. However, there are a few things both parties should be aware of when entering into a verbal agreement.

First, it is important to note that verbal contracts can be more difficult to prove in court. When a written contract is disputed, the terms can easily be reviewed and verified by the court. With a verbal contract, it can be harder to provide evidence of what was agreed upon. This means that if the terms of the agreement are not clear or if there is a dispute later, it may be harder to resolve the issue.

To avoid such problems, it`s best to make sure that both parties are clear on what was agreed upon and to follow up with an email or written summary of the verbal agreement soon after it is made. This way, both parties have a record of what was agreed upon, which can be helpful if there is a dispute later.

Another thing to keep in mind is that there are some contracts that must be in writing to be legally enforceable. These include contracts for the sale of goods over $500, real estate transactions, and contracts that will take longer than one year to complete. In these cases, a verbal agreement will not be sufficient to create a legally binding contract.

If you are considering entering into a verbal agreement, it is always best to consult with an attorney who can advise you on the legality of the agreement and your options if there are any disputes. An attorney can help you draft a written summary of the agreement or a more detailed written contract, which can provide greater protection in the event of a dispute.

In summary, verbal contracts are legally binding and enforceable in Missouri. However, they can be harder to prove in court than written contracts, and there are certain types of contracts that must be in writing. If you are entering into a verbal agreement, it`s important to make sure that both parties are clear on the terms and to follow up with a written summary or contract. Consultation with an attorney can also provide additional protection and advice.