Verbal Contracts in Missouri

Verbal Contracts in Missouri: What You Need to Know

When it comes to contracts, most people think of a written agreement signed by all parties involved. However, verbal contracts are just as legally binding in Missouri as written contracts. In fact, a verbal agreement can be just as enforceable as a written one. But before you enter into a verbal contract in Missouri, there are some important things you need to know.

What Constitutes a Verbal Contract?

A verbal contract is an agreement made between two or more parties through spoken words, without the use of written documents. In Missouri, verbal contracts are generally enforceable unless they are subject to the statute of frauds. The statute of frauds requires written evidence of the agreement for certain types of contracts, such as contracts for the sale of goods over $500, contracts for the transfer of real estate, or contracts that cannot be performed within one year.

Enforcing a Verbal Contract

If you enter into a verbal agreement and the other party breaches the agreement, you may have legal recourse. You can sue the other party for breach of contract, just as you would with a written agreement. However, proving the existence of a verbal contract can be more challenging than providing written evidence. The burden of proof is on the party seeking to enforce the contract.

To enforce a verbal contract, you will need to demonstrate that:

– An agreement was made between the parties

– The terms of the agreement were clear and definite

– The parties intended to be bound by the agreement

– There was consideration (something of value) exchanged between the parties

– The agreement was not subject to the statute of frauds

Evidence such as witness testimony, emails, texts, or other written communications may be used to prove the existence and terms of the verbal agreement.

Why Written Contracts are Preferable

While verbal contracts are generally enforceable in Missouri, written contracts are generally preferred. With a written agreement, the terms of the contract are more clearly defined and can be referred to if there is any dispute. Additionally, a written agreement provides proof of the agreement`s terms, and it is easier to enforce in court.

Conclusion

Verbal contracts are legally binding in Missouri, as long as they are not subject to the statute of frauds. However, they can be more difficult to prove and enforce than written agreements. Therefore, it is always advisable to have a written contract, whenever possible, to ensure that the terms and conditions of the agreement are clearly defined and enforceable in court.