Is a Verbal Agreement Legally Binding? | Legal Articles

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Is a Verbal Agreement Legally Binding?

What makes an agreement legally binding?

The only requirements for a valid contract to be enforceable is the parties:

(1) minds are ‘ad idem,’ in other words, consensus, or meeting of the minds,

(2) have legal capacity to act,

(3) have made an offer which has been accepted,

(4) and that the agreement is not illegal.

is a verbal agreement legal

Is a Verbal Agreement legal?

Although verbal agreements are as legally binding and enforceable as any written agreement, the issue presents itself when trying to prove the existence of the said agreement.

In any event, if the parties agree that a verbal agreement was made, then it must be determined what the exact terms of the agreement are.

One should keep in mind that certain agreements are required to be reduced to writing to be valid. For example:

  • a sale of immovable property,
  • an antenuptial contract
  • or a Will.

Benefits of a Written Agreement

When a dispute arises, a written properly agreement drafted serves:

  • to provide clarity and certainty on the terms of the agreement,
  • in addition to determining any breach and its consequences,
  • cancellation of the contract and amendments.

Bailey Haynes Inc. – Your Law Firm in Cape Town

Contact our law firm in Cape Town and our attorneys will assist in the drafting of various agreements to suit your needs and secure your peace of mind, transparency, and trust.


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