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The Law & Verbal Agreements

By: Garry Crystal - Updated: 8 Dec 2016 | comments*Discuss
 
Verbal Agreements Legal Binding

Many people are not aware that verbal agreements are in many cases as legally binding as written contracts. Verbal contracts can be upheld by a court if someone decides to breach the agreement, although without written terms and conditions it may be difficult to prove.

Conditions of a Verbal Agreement

Under law there are two basic terms that constitute a binding agreement. The verbal agreement will be binding if there was an agreement on the services to be performed and an agreement was reached on remuneration for this service. This agreement can be reached by a verbal exchange in person, via telephone or via an email.

There are certain contracts and agreements that must be made in writing and these will include the sale of property, tenancy agreements, copyright transfer, and contracts for consumer credit. In some cases, verbal agreements will not be upheld in court, not because of the lack of a written agreement but because the terms of the verbal agreement were not clarified.

Written Agreements

For any agreement concerning an exchange of services it is a wise idea to have some form of contract or written statement. The contract or statement should include the terms and conditions of the agreement and is particularly helpful if a dispute between the parties occurs.

Complete Verbal Agreements

In order for a verbal agreement to be legally binding the agreement must have reached completeness. This means that all terms and conditions have been reached and agreed regarding services and terms of pay. Agreements will be incomplete when there are still further terms and conditions to be agreed. Agreements in principle will not usually be upheld in court and will not usually be considered complete verbal agreements.

Verbal Agreements and Disputes

If either party has decided to break a contract then the matter can be taken to the legal courts. In most cases the dispute may rest on the justification of the terms of the verbal agreement. There are a few ways that a judge will try and establish the terms of the agreement. These could include investigating what actually happened in practice. This can include the services that were actually undertaken and if any money whatsoever was paid for any services.

Enforcing a Verbal Agreement

Apart from taking the matter to court there are other ways to enforce a verbal agreement. If money is owed then the matter can be passed on to a collection agency to try to enforce the matter for you. The disgruntled party can also apply pressure themselves by sending letter, emails and making telephone calls to the person who is in breach of contract. Copies of all emails and letters should be kept in case the matter does reach the law courts.

Payment before Service

One way of avoiding this sort of dispute ever occurring may be to ask for some form of payment before supplying a service. Although the customer may not always agree to this it may be an option to consider. In some cases if a person is going to breach a contract and withhold payment then the odds are they may never have intended to pay for the service in the first place. In many cases though a customer may not like the idea of paying for a service until the job is completed for fear of non completion.

Threatening court action for breach of a verbal contract may not actually help the matter at all if one party intended not to carry through on the agreement. However the law does consider complete verbal agreements as Legally Binding and the matter can be brought to the law courts for a judge to make the final decision.

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[Add a Comment]
DrunkandConfused - Your Question:
Well just spent 2 hours explaining a problem and then submitted but no acknowledgement so no clue if you got it or not?!

Our Response:
We have received your comment. Unfortunately, we can only give very general guidance to point you in the right direction, which would be in your case to seek legal advice. By putting down the deposit you have entered into a legally binding contract. If the company has sent you the contract, then you would do well to read the terms. It is highly unlikely you will receive your deposit back and the dealership still 'may' be able to pursue you for the amount outstanding through court. Much depends upon the goodwill of the dealership to allow you to terminate the contract and whether it thinks it would have a chance at gaining the money through court.
ContractsAndAgreements - 7-Dec-16 @ 10:54 AM
Hello. Incidentally I am absolutely sober as I write this. On the night of 4th December whilst it was late at night in Australia and I was under the influence of alcohol and I saw an ad for a car that had been for sale for some months in the UK and I got carried away and rang the dealership and offered to buy the car at the advertised price.No negotiation. The dealer asked me for GBP1000 deposit which I agreed to. .all this done over the phone. Then within 12 hours and now with a clear head it hit me that GBP30,000 was AUD50,000, and that was without shipping costs.I emailed the dealer saying I had made a grave error of judgement and I could not proceed and apologised. Dealer didn't answer email so I rang and spoke in lieu of the dealer to an employee who said no worries he understood completely and would get The Boss to call me. A call that never came.In response to my email saying I was not going ahead, in the same email chain he completely ignored my email and sent back words to the effect that it was well done on my purchase and find attached my invoice for GBP30,0000. I responded politely but distinctly last night simply saying that he appears to have overlooked the content of my email below saying I was not proceeding, highlighting the relevant bits regarding me not going ahead in bright yellow background.In my bank in Australia it is a "pending payment" went physically to the bank today and tried to delete the pending payment. Told cant do. But once it becomes a real payment on December 12th they say I fillout a "dispute form" and they will get my GBP1000 back. Don't worry. Then I get home tonight to read an email from UK dealer to say that my GBP1000 is gone and they will legally pursue me for the remainder unless I agree to buy a car from them within the next 2 years. I have and will not respond, as during any proceedings all this is admissible duringDiscovery. I wonder whether l'll get my GBP1,000back or its truly lost? I believe the dealer won't go me for the full GBP30,000 because it will be a he said she said argument.But my threatening email now tonight makes me extremely upset and distressed that my bank's no worries attitude about my deposit is optimistic.It took 6 people in a huddle at the bank today to tell me their way forward.None of it in writing of course. I'm a 57yo male recently unemployed, and while AUD1709 loss of holding deposit won't break the bank, being unemployed it now is a material sum of money to me. I have no possibility of getting legal aid and for such a relatively low sum of money to engage a lawyer seems mad, and as for legal friends I'm too ashamed and embarrassed over what's happened to admit it to them. I feel so stupid. The questions?Is my deposit gone or no worries as the bank says? Am I right to assume the UK dealer won't pursue me for the whole GBP30,000 in the courts unless I agree to his ludicrous demands for me to buy an as yet unknown car at an unknown price in the ne
DrunkandConfused - 6-Dec-16 @ 12:37 PM
Well just spent 2 hours explaining a problem and then submitted but no acknowledgement so no clue if you got it or not?!
DrunkandConfused - 6-Dec-16 @ 12:35 PM
Hello. Incidentally I am absolutely sober as I write this. On the night of 4th December whilst it was late at night in Australia and I was under the influence of alcohol and I saw an ad for a car that had been for sale for some months in the UK and I got carried away and rang the dealership and offered to buy the car at the advertised price.No negotiation. The dealer asked me for GBP1000 deposit which I agreed to. .all this done over the phone. Then within 12 hours and now with a clear head it hit me that GBP30,000 was AUD50,000, and that was without shipping costs.I emailed the dealer saying I had made a grave error of judgement and I could not proceed and apologised. Dealer didn't answer email so I rang and spoke in lieu of the dealer to an employee who said no worries he understood completely and would get The Boss to call me. A call that never came.In response to my email saying I was not going ahead, in the same email chain he completely ignored my email and sent back words to the effect that it was well done on my purchase and find attached my invoice for GBP30,0000. I responded politely but distinctly last night simply saying that he appears to have overlooked the content of my email below saying I was not proceeding, highlighting the relevant bits regarding me not going ahead in bright yellow background.In my bank in Australia it is a "pending payment" went physically to the bank today and tried to delete the pending payment. Told cant do. But once it becomes a real payment on December 12th they say I fillout a "dispute form" and they will get my GBP1000 back. Don't worry. Then I get home tonight to read an email from UK dealer to say that my GBP1000 is gone and they will legally pursue me for the remainder unless I agree to buy a car from them within the next 2 years. I have and will not respond, as during any proceedings all this is admissible duringDiscovery. I wonder whether l'll get my GBP1,000back or its truly lost? I believe the dealer won't go me for the full GBP30,000 because it will be a he said she said argument.But my threatening email now tonight makes me extremely upset and distressed that my bank's no worries attitude about my deposit is optimistic.It took 6 people in a huddle at the bank today to tell me their way forward.None of it in writing of course. I'm a 57yo male recently unemployed, and while AUD1709 loss of holding deposit won't break the bank, being unemployed it now is a material sum of money to me. I have no possibility of getting legal aid and for such a relatively low sum of money to engage a lawyer seems mad, and as for legal friends I'm too ashamed and embarrassed over what's happened to admit it to them. I feel so stupid. The questions?Is my deposit gone or no worries as the bank says? Am I right to assume the UK dealer won't pursue me for the whole GBP30,000 in the courts unless I agree to his ludicrous demands for me to buy an as yet unknown car at an unknown price in the ne
DrunkandConfused - 6-Dec-16 @ 12:31 PM
Hi there i have been in the process of buying a house, the price was agreed by the estate agent, who also turns out to have a vested interest in the sale!!We agreed the price, i signed the contract but my solicitor hadn't sent the contractor to the vendors solicitor instead he requested a portfolio which seemed missing.it seems that he possibly knowingly agreed to sale under the knowledge that the site maps were incorrect and part of my house is built on land he does not own.He said this can take months... my solicitor is not happy with the whole thing and the vendor has offered me to rent the house in the interim till it is resolved however he has stipulated that after 12 months if the issue is not resolved he can retract the house or i can walk away.I have spent over £6K on the house with fitted made to measure furniture, concrete etc, he had given me the house key to move my stuff in as we had verbally agreed it was only gonna take a week or two to be resolved, it turns out now the land has gone to the crown.I have gave up my last property and stayed with family, i have 4 children and now i don't know where i stand...i have invested so much money into the property.Can the vendor legally withdraw his offer of sale agreed to me??
Barbs - 2-Dec-16 @ 2:12 PM
Hello in August my husband give one quote for one extension started by someone elsebecause some parts of job was made ha0 could not give a proper quote and things show up shortly .my husband talk with the client about that and he ask more money for extra jobs the client promise to pay. In the mean time the initial quote was made with normal material not the expansive ones. The client ask materials more extensive then it was agree in the last part of jobmy husband ask again to be paid for extra jobs and extra money for materials the client refuse. Now he harrassing my husband daily with textand calls .my husband can't sustain the complete job because the estimate was made with less materials not so expensive and no electric no extra jobs no certificate cor electric ore building controls. Pleas advice me what to do.thankyou.
Ilsi - 1-Dec-16 @ 1:31 PM
I recently took a client to Bristol Small Claims Court for unpaid commission. The client accepted that he owed the money to my company and even paid the first £300 of an agreed stage payment arrangement "pending settlement of a probate matter", or so he said. He renaged on the rest of the payments so I took court action with a supporting email trail over 12 month period wherein the client admitted owing the money and then he decided hey ho why should I pay?. It was never in doubt that he owed the money.Despite this, the judge said my client didn't sign a contract so dismissed my case. How can that be right ?
Locations - 22-Nov-16 @ 1:41 PM
Hi every one Actually I started work at a company on the 18th of April 2016 with a salary of 175kd.MY boss told me he was going to increase my salary either to 120kd or 130kd depending on my work. At the end of the month of April right up to the end of the month of May, was not doing what I was employed for but merely doing research on his notes on the Certified Internal Auditing. Ihad to quite the job I was earning 200kd monthly to this present job because I new I will have a 20 or 30kd increase. First week of September He told me I was terminated and he will give me till the 2th of December to get a new job. Also he has never increased the salary. When I asked why I was terminated he told me because my salary was too small but his brother told me there is no work and also he said he wants to bring in some body from Egypt but he will pay me a salary for the month of December. He also told me my visa will be cancelled under his company but the ministry will give me 3 months to fine a job. Please what can I do?.
clar - 16-Nov-16 @ 8:15 AM
Hi. I just wanted because someone wanted to sue me. We agreed to buy a business last year but I did not have the money yet. So this person said he will put the money out first and signed the agreement that said non-refundable security deposit. 1 month later, he wanted to back out and wanted me to pay him the money. I signed the agreement only as witness and not the purchaser. Does this person has the right to collect money from me or sue me or do I have the right to sue this person for harassing me and forcing me to pay the money?
Haley - 14-Nov-16 @ 5:08 AM
Good evening I am a hairdresser and some time ago a qualified member of my staff did an a member of staffs hair and her mothers hair.Through a no win no fee legal company they are now threatening to sue me for 'damage to hair' as they both claim my staff member was negligent of which she was most definitely not.The girl had pre existing damage and is now claiming we damaged her hairWas a contract formed please help this is causing me untold stress THANKYOU GREATLY
Fabio - 14-Nov-16 @ 1:02 AM
John is the director of a construction company. He decided to have the office building completely redecorated. Chris, the Director of Chris Interiors, agreed to do the work for £6,000. John paid £1,000 in advance and agreed to pay the balance on satisfactory completion of the work. John also employs a new project manager, Peter, to take over for six months while he visits his relatives in the United States. Peter agreed to start on 1 June and not to work for any other construction company during his six months’ contract. When Chris finished the redecoration, John complained that the painting was substandard. John demanded Chris to repaint all the walls and he refused to pay any more money. Chris is now threatening legal action. Peter has written to John saying he will not be working for him because he has been offered a better job by his rival company at the end of the road.
Jamessmith78 - 4-Nov-16 @ 3:19 PM
Johnemploys a new project manager, Peter, to take over for six months while he visits his relatives in the United States. Peter agreed to start on 1 June and not to work for any other construction company during his six months’ contract. Peter has written to John saying he will not be working for him because he has been offered a better job by his rival company at the end of the road. The legal position of John and Peter Can John stop him working for his rival? 1. Consider specific performance. 2. Consider an injunction. 3. Consider damages if Peter does not work for John and he has to pay a replacement project manager more than he would have paid Peter.
JamesSmith78 - 4-Nov-16 @ 3:17 PM
Hi, I'm in a position where the verbal contract I entered into was substantively different to the written contract I was given to sign. What a sales consultant described as a 'refundable retainer reimbursed on sale of my business' verbally, turned into a 'non-refundable deposit totally independant of any commission charges' on the written contract. What they do by sleight of hand is to move the deposit amount across and add it on to the minimum agreed sale price, so everything looks above board and proper. Of course, though the sale price is a moveable feast, so in essence they keep the deposit and indeed, if they get lucky and the actual sale price is above the minimum sale price stipulated then they also take commission on it. It's all smoke and mirrors but I understand the concept of good faith in UK contracts is pretty poor. I'm stuck.
TC - 3-Nov-16 @ 3:38 PM
Hello, I am a freelance teacher in Ireland and I have been working with a company for nearly a year. They promised to send a written contract for several months and never did...they also started treating my like an employee by telling me what to do and how to do it (changing my schedule and demanding me to work more than I agreed to). They said they were going to send a self-employment contract once again and I waited...they also asked me (verbally) to get rid of my other clients so that I could only focus all of my time on them. I agreed to this as long as they promised me some kind of consistent work for a year and they said yes and that they would send me a contract the next day...they of course didn't send it and then just days before they were going to pay me for next month's classes, they completely bailed. I had already dropped my other clients after they asked me to (since we had a verbal agreement that I would be guaranteed consistent work). They now will not return my phone calls or emails and are avoiding me. They also took over my teaching account and deleted my own account off of it so that I had to open a new account and no longer had access to those students who were in my account. We did have a verbal agreement that IF they ever stopped working with me in the future, that it would not be sudden and that they would phase out my classes gradually so that I would not be left in a bad financial situation (since I promised to get rid of my other clients). I do not have this agreement in writing though. What are my rights? Can I get compensation? I was also thinking of filing under employment instead of self-employment when I do my taxes since I felt that they didn't treat me as a self-employed individual. I also had students complain to me that they felt exploited by this company. Is there anywhere I can report them to? Sorry for so many details and questions, but I feel very betrayed and want compensation and am not sure what my rights are or how I would even get compensation.
Ash - 2-Nov-16 @ 2:14 PM
Hi I am a coach, we verbal agreed to having a sport hall, but now we've been training on it, it's too small & health n safety is a big issue! Where do we stand?
Coach - 2-Nov-16 @ 1:18 PM
HIggs - Your Question:
Can anyone help me with this I worked on a project under a gentlemen's agreement and now the main contractor is not paying me and it's says I am liable for lads I have no written contract and he never informed me throughout the project of any penalty clause ,Thanks

Our Response:
You would have to seek legal advice regarding this to see if you have a case to take the matter to court/small claims court. There will be a contract in place, due to the fact you have carried out work. However, trying to prove who is responsible for your workers may be more difficult and if you as the sub-contractor has employed other workers, then paying them may fall to you. Any evidence you have either via email/text or payments through your bank account will help justify a contract.
ContractsAndAgreements - 28-Oct-16 @ 10:37 AM
Can anyone help me withthis I worked on aprojectunder agentlemen's agreementand now the main contractor is not paying me and it's says I am liablefor lads I have no written contract and he never informedmethroughoutthe project of any penaltyclause, Thanks
HIggs - 27-Oct-16 @ 4:33 AM
As a member of a sailing club, I was asked by the commodore - an officer of the club - to source and provide several printed fabric banners for club use during a specific, repeating event. The sizes, style and other details were agreed at a meeting between us and, apart from an injunction to 'keep the price down and let me know the costs', there was no limit placed nor specific sum agreed. After collecting multiple quotes, and with time very short, I acquired the relevant goods from a commercial supplier and, in good faith, paid that supplier myself. The goods were taken to the club and displayed for members, including the commodore, to approve and agree their use. The costs were communicated then, acceptance of the goods was agreed, and directions given by the commodore to me for the location and means of display. This was done as he directed, the banners were displayed on the club premises for a week, and after the end of the event they were removed by the commodore and retained. I subsequently provided a letter of request for payment to the commodore, submitting copies of the £319 invoices I'd paid the commercial supplier. After a delay, I was sent an email of refusal to pay, but offering an 'ex gratia' sum of £100. There is no element of profit to me. The costs were demonstrably less than other suppliers. Does a contract exist and - in event of intransigence - can I seek recourse at law, or otherwise?
oldbillbo - 22-Oct-16 @ 10:59 AM
cat - Your Question:
I had a verbal agreement for a roofing contractor to power wash my roof, apply a primer , and then a silicone product. The product is peeling off after 1 week. Am I obligated to have him fix it ? He sent me an invoice after the job was "done" with his signature and the area where my signature is blank. Would he be able to put a lean on my house?thank you

Our Response:
You would have to take this up with the company directly.
ContractsAndAgreements - 20-Oct-16 @ 2:50 PM
I hired a self employed electrician/builder to carry out and project manage (PM) a substantial extension to my house. I provided all architect drawings for the project. The project manager was required to submit engineering calculations for the extension and for these to be approved by the local authority under their own building regulation guidelines. The PM obtained a verbal quote from an engineering company for the entire project, mid way through some of works got altered and a recalculation of the numbers wee required. No hourly rates or numbers were ever discussed with me as the owner of the property and the PM arranged all of this himself. I was told of the cost and that once all calcs were provided I was asked to pay which I did. A few weeks later I received a bill for a sum three time the amount previously paid with the comment for extra work carried out.I had never or have since ever spoken to the engineer and the PM tells me he never received any notice of uplift in fees, the engineering firm has never provided a schedule of fees and charges just a verbal sum to the PM which I paid on the PMs instruction once the work had been carried out. There are two further issues in addition to the extra invoice. 1) Completion of the extension required further engineering calcs for which I approached another company personally and outside of my PM and I duly received full written details of the terms and payment etc and fulfilled the contract properly, 2) Other parts of the remaining building have started to either slip, heave or deteriorate as a result of the new extension anda structural engineer is now investigating. The question therefore is, i) Is the revised invoice cost enforceable as no terms, fees, rates etc were ever given , only a sum for the calcs? ii) Am I responsible for the revised invoice or is atthe foot of the PM who appointed the engineer ? iii) Should I counter sue the engineer for my increased costs of appointing a second engineer? and iv) Should I instigate proceedings against the first engineer for wrongful calculations given the movement of the old structure following the building work carried out?
PJ - 20-Oct-16 @ 2:01 PM
I had a verbal agreement for a roofing contractor to power wash my roof, apply a primer, and then a silicone product. It is already peeling off.Do I legally need to let him fix it? would he be able to put a lean against my house if I did not pay him? After the job was done he sent me an invoice with his signature and where my signature is it is blank.Thank You
cat - 20-Oct-16 @ 3:02 AM
I had a verbal agreement for a roofing contractorto power wash my roof, apply a primer , and then a silicone product. The product is peeling off after 1 week. Am I obligated to have him fix it ? He sent me an invoice after the job was "done" with his signature and the area where my signature is blank. Would he be able to put a lean on my house? thank you
cat - 20-Oct-16 @ 2:57 AM
JB - Your Question:
Hi, I work at a school and asked to cover a person on maternity leave to do extra hours at dinner timeI did this but before the woman was due to come back I was verbal asked even if the woman came backwould I carry on doing the job and I said yes. The woman is due to come back but has said she will not be returning but I have been told they are now restucking and they may not want me to do the job now and get some new staff. Where do I stand as still doing the job ?

Our Response:
I'm afraid if you are contracted as being temporary staff due to maternity leave, then I'm afraid you have no rights and the school are not obliged to keep you on, even if you have had a verbal confirmation.
ContractsAndAgreements - 19-Oct-16 @ 2:01 PM
Hi, I work at a school and asked to cover a person on maternity leaveto do extra hours at dinner time I did this but before the woman was due to come back I was verbal asked even if the woman came backwould I carry on doing the job and I said yes . The woman is due to come back but has said she will not be returning but I have been told they are now restucking and they may not want me to do the job now and get some new staff . Where do I stand as still doing the job ?
JB - 18-Oct-16 @ 10:32 PM
My father promised my mother during the divorce verbally he would look after me and by doing so let me live in his old house while he has been living with his girlfriend for approx 7 or 8 years now. I have made several improvements to the house and now He has now informed me that he wants me out the house. The house is in his name but I have lived there for 25 year. Approx 8 year by myself making the house improvements and spending a small fortune doing so. Can i make a stand against him? Thanks. I forgot to add. My father told me verbally that will always be my house otherwise I wouldn't have made any improvements. If he had told me it wasn't my house then I wouldn't have made any improvements what so ever and save my money for a mortgage for another house rather than paying all the bills and making home improvements. Thanks.
Buddy - 14-Oct-16 @ 3:38 PM
My father promised my mother during the divorce verbally he would look after me and by doing so let me live in his old house while he has been living with his girlfriend for approx 7 or 8 years now. I have made several improvements to the house and now He has now informed me that he wants me out the house. The house is in his name but I have lived there for 25 year. Approx 8 year by myself making the house improvements and spending a small fortune doing so. Can i make a stand against him? Thanks.
Buddy - 14-Oct-16 @ 3:36 PM
Bob - Your Question:
I was interviewed by the HR manager at a major food factory I was offered the job and I was told I would be getting £8.40ph as soon I finished my training I finished my 6 weeks of training ln june but I am still getting paid 7.50ph I have asked my manager about this and his reply was that my agreement was with the HR manager who is no longer working for the company and therefore what was agreed between us does not count even though my manager spoke to the HR manager at the time on 3 separate occasions and was told yes that was agreed.where do I stand

Our Response:
You should have been issued with a contract that stipulates your wage, you will need to refer to this.
ContractsAndAgreements - 12-Oct-16 @ 12:49 PM
Shanna- Your Question:
I was asked if I would be willing to go back and work for an a former employer. I went in and talked to them and I said I would come back under these terms. I wouldn't work no later then 6 o'clock pm and have Sunday and Mondays off so I can be home with my daughter. And they agreed. Well now I am working closing shifts and not able to be home with my daughter. She has a learning disability and I need to be home to help her. What can I do??

Our Response:
If your contract specifies these are the hours you should work and you are no longer on probation, then your employer should keep to the contract unless you authorise otherwise. Therefore, it is important that you read your contract and if it does not fall in line with the hours you are doing, you may wish to give ACAS a call for more advice with regards to your options.
ContractsAndAgreements - 12-Oct-16 @ 12:41 PM
I was interviewed by the HR manager at a major food factory I was offered the job and I was told I would be getting £8.40ph as soon I finished my training I finished my 6 weeks of training ln june but I am still getting paid 7.50ph I have asked my manager about this and his reply was that my agreement was with the HR manager who is no longer working for the company and therefore what was agreed between us does not count even though my manager spoke to the HR manager at the time on 3 separate occasions and was told yes that was agreed .where do I stand
Bob - 11-Oct-16 @ 9:04 PM
I was asked if I would be willing to go back and work for an a former employer. I went in and talked to them and I said I would come back under these terms. I wouldn't work no later then 6 o'clock pm and have Sunday and Mondays off so I can be home with my daughter.And they agreed. Well now I am working closing shifts and not able to be home with my daughter. She has a learning disability and I need to be home to help her. What can I do??
Shanna - 11-Oct-16 @ 7:52 PM
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