Is a verbal agreement enforceable?

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Commercial Law

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Verbal agreements, also known as oral agreements, can sometimes be legally enforceable, but they may present challenges when it comes to evidence and application.

In Victoria, certain types of contracts, such as those for the sale of land or agreements that must be in writing under specific legislation, generally require written documentation to be enforceable.

Verbal agreements can still be valid and enforceable in certain situations, provided they meet certain criteria. These criteria include mutual agreement, offer and acceptance, consideration, and an intention to create legal relations.

The difficulty with verbal agreements lies in proving their existence and the terms agreed upon, as there may be a lack of tangible evidence.

It is advisable to have written contracts for important or complex agreements to provide clear documentation and reduce the risk of disputes. Seeking advice from a Geelong commercial lawyer is crucial to understand the enforceability of a verbal agreement and explore available options in case of a breach.

Geelong Legal can provide guidance on the enforceability of verbal agreements and assist you in creating written contracts to protect your legal interests.

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