Verbal Agreement UK: Everything You Need to Know

A verbal agreement, also known as an oral agreement, is a legally binding contract made between two or more parties without a written document. In the UK, verbal agreements are just as legally enforceable as written agreements, provided that they meet specific legal requirements.

In this article, we`ll discuss the essential elements of a verbal agreement in the UK, how to make one, and what to do if the other party breaches the agreement.

Essential Elements of a Verbal Agreement in the UK

To be legally binding and enforceable, a verbal agreement must have the following essential elements:

Offer and acceptance: There must be a clear offer made by one party and an acceptance of that offer by the other party. For example, if you offer to sell your car to someone for £5,000, and they accept the offer, you now have a legally binding verbal agreement.

Consideration: Both parties must promise to do something or give something of value to the other. Consideration can be anything of value, such as money, goods, or services. For example, if you promise to sell your car for £5,000, and the other party promises to pay you £5,000 in exchange, you have consideration.

Intention to create legal relations: Both parties must intend to create a legally binding agreement. The agreement cannot be a mere social arrangement or promise.

Certainty: The terms of the agreement must be clear and specific. All parties must understand and agree on the terms.

How to Make a Verbal Agreement in the UK

The process for making a verbal agreement is relatively straightforward. Follow these steps to create a legally binding contract:

Step 1: Offer – One party makes an offer to another party. The offer must be clear and specific.

Step 2: Acceptance – The other party accepts the offer. Acceptance can be verbal or by conduct.

Step 3: Consideration – Both parties must promise to do something or give something of value to the other.

Step 4: Intention to create legal relations – Both parties must intend to create a legally binding agreement. The agreement cannot be a mere social arrangement or promise.

Step 5: Certainty – The terms of the agreement must be clear and specific. All parties must understand and agree on the terms.

What to Do if the Other Party Breaches the Agreement

If the other party breaches the verbal agreement, then you can take legal action to enforce the agreement. However, it can be challenging to prove the terms of a verbal agreement, and it`s always advisable to have a written agreement.

If you have a witness to the agreement, ask them to provide a statement affirming the terms of the agreement. You should also gather any evidence you have, such as emails, text messages, or receipts.

If the other party refuses to comply with the agreement, you can take them to court to enforce the terms of the agreement. However, it`s always best to try to resolve the dispute amicably before taking legal action.

Conclusion

A verbal agreement is a legally binding contract made between two or more parties without a written document. In the UK, verbal agreements are just as legally enforceable as written agreements, provided that they meet specific legal requirements.

To make a legally binding verbal agreement, make sure that all essential elements are present. If the other party breaches the agreement, you can take legal action to enforce the agreement. However, it`s always best to try to resolve the dispute amicably before taking legal action.