Are verbal agreements legally valid?
In general, verbal agreements are valid and legally enforceable. Notably, the contracting parties must have consensus and intention to contract; they must have capacity to contract (e.g. mental capacity); the agreement must be lawful. There are certain agreements that are legally unenforceable unless they have been reduced to writing, for instance, a credit agreement, an ante-nuptial contract, an agreement for the sale, donation and exchange of land, and suretyship agreements.
Although some verbal agreements may be legally valid and enforceable, proving their existence in court may be a gargantuan task. The following are the advantages of written agreements.
• Easy to prove the existence of the contract;
• Terms of the contract are easily ascertainable;
• The consequences and remedies of a breach of the agreement are easily set out.