NYAYAM

You shake hands. You agree over a phone call. You say “yes” in a meeting.

But later, when things go wrong, the big question arises: does a verbal agreement actually hold up in court?

For many people in the US, verbal agreements feel informal and risky. Yet under US law, they can be legally binding in many situations. Understanding when a verbal agreement is enforceable and when it is not can save you from costly disputes and misunderstandings.

What Is a Verbal Agreement?

A verbal agreement is a contract formed through spoken communication rather than a written document. It can happen in person, over the phone, or even via a video call. Legally, a verbal agreement is still a contract if it meets certain requirements.

When Is a Verbal Agreement Legally Enforceable?

In the US, most verbal agreements are legally enforceable if all essential elements of a contract are present:

1. Offer – One party clearly offers something of value.
2. Acceptance – The other party clearly agrees to the offer.
3. Consideration – There is an exchange of value such as money, services, or goods.
4. Mutual Intent – Both parties intend to enter into a binding agreement.
5. Legal Purpose – The agreement is not for something illegal.

If these elements exist, a court may treat a verbal agreement just like a written one.

Situations Where Verbal Agreements Are NOT Enforceable

While many verbal agreements are valid, US law requires certain contracts to be in writing under what is known as the Statute of Frauds.

Common examples include:

• Contracts involving real estate
• Agreements that cannot be performed within one year
• Contracts for the sale of goods over $500 under the UCC
• Marriage related agreements
• Agreements to pay someone else’s debt
  

If your agreement falls into one of these categories, a verbal promise alone may not be enforceable.

The Biggest Challenge: Proving a Verbal Agreement

Even if a verbal agreement is legally valid, proving it is the hardest part.

Courts rely on evidence such as:

• Emails or text messages referencing the agreement
• Witness testimony
• Payment records or invoices
• Behavior that shows both parties acted as if an agreement existed

Without supporting evidence, verbal agreements often turn into “your word against theirs” situations.

Are Text Messages and Emails Verbal Agreements?

While not verbal, texts and emails can strongly support or even form a binding contract. In many US cases, courts have treated written digital communication as valid proof of agreement.

If your verbal agreement is followed up by a message saying “Just confirming what we discussed,” it significantly strengthens your legal position.

Should You Rely on Verbal Agreements?

Verbal agreements may be enforceable, but they are risky.

Best practices include:

• Following up verbal discussions with a written summary
• Keeping records of payments and communications
• Using written contracts for important or long term commitments

A simple written agreement can prevent months of legal stress later.

What To Do If a Verbal Agreement Is Disputed

If you believe a verbal agreement has been broken:

• Gather all supporting evidence
• Document timelines and conversations
• Seek legal guidance early

Understanding your rights early can help you decide whether to negotiate, escalate, or walk away.

How Nyayam Can Help

Legal situations involving verbal agreements are often confusing and stressful. Nyayam helps you understand your rights and take informed action without unnecessary complexity.

Whether you are dealing with a business dispute, a service agreement, or an unpaid promise, Nyayam gives you clarity before you make your next move.

Know where you stand. Protect yourself. 

Start with NYAYAM