A verbal contract is a legally binding agreement made between two parties without any written documentation. Such a contract can be challenged only if there is sufficient evidence to prove that the agreement was made and that both parties had an understanding of the terms. In California, verbal contracts are enforceable under certain conditions, but it is difficult to prove a breach of contract in the absence of any written proof. This article discusses the legal implications of a breach of verbal contract in California.
The California Civil Code recognizes verbal agreements as enforceable when it can be proven that there was an offer, acceptance, and mutual intent to be bound. However, verbal contracts are subject to the statute of frauds, which means that certain types of contracts must be in writing to be enforceable. For example, contracts related to real estate, marriage, or sale of goods worth more than $500 must be in writing.
If a verbal contract is breached, the injured party can sue for damages or specific performance in a California court. However, the burden of proof lies with the plaintiff who must demonstrate that the breach occurred, and that there was a clear understanding of the terms. In addition, the plaintiff must show that he or she suffered damages as a result of the breach.
It is important to note that verbal contracts are more difficult to enforce than written contracts. This is because it is challenging to prove the terms of the agreement, particularly when there are no witnesses or documentation. In California, the state of limitations for filing a lawsuit for breach of verbal contract is two years from the date of the breach, or from the date the breach should have been discovered with reasonable diligence.
To protect oneself from the potential risks of verbal agreements, it is advisable to put everything in writing. A written contract can act as proof in case of a dispute and can help avoid misunderstandings. It is essential to clearly outline the terms of the agreement, including the obligations of both parties, the timeframe of the agreement, and the consequences of a breach.
In conclusion, while verbal contracts are enforceable in California, they are subject to limitations and can be difficult to prove. It is always advisable to reduce agreements to writing and have both parties sign the document to prevent disputes and resolve conflicts. In case of a breach of verbal contract, it is essential to seek legal advice and have a qualified attorney review the situation to determine the best course of action.
