Is it Hard to Prove a Verbal Contract?

It is easy to prove a verbal contract when there are sufficient supporting documents such as receipts, credit card statements, text messages, emails, and invoices. An oral contract is enforceable in court when there are supporting witnesses.

Are Oral Contracts Binding?

Many oral contracts are considered binding under the law; in the same way, a written contract is. In the same manner, some verbal agreements are enforceable even if nothing has been placed in writing. However, some special issues arise with oral contracts. These common difficulties include:

Proof of the existence of the contract
Enforceability of the contract
Statute of Frauds

Please contact Nakase Wade attorney breach of contract questions and determine if there is a valid contract.

Enforceability of Verbal Contract

The court of law must see the fundamental conditions and terms of the verbal agreement to enforce it. This need can be challenging when nothing is written down. When nothing has been written, the court has to rely on the actions, words, and testimonies of the parties involved.

When the parties involved disagree over the contract’s terms, as Mark and Mary do, it is difficult for the court to determine if one or both parties breached the contract.

The difficulty in enforcing a verbal agreement lies in the absence of proof. Without proof, it is difficult for one party to enforce the terms of the contract.

For example, Mark can deny that he ever told Mary he would sell the car for $3000. Then it becomes Mary’s word against Mark’s; or, “he said, she said.” Now, if Mary’s friend Veronica had come along on the drive to San Clemente and was a witness to the conversation between Mary and Mark, that would strengthen Mary’s claim.

How to Prove A Contract

The party trying to enforce the verbal agreement must prove that it existed before suggesting that the parties broke the terms of the oral contract.

If the party can provide evidence to prove that an oral agreement existed, they may be able to legally prove the agreement existed. For example, if one party or both acted out some parts of the contract, and they can show evidence of these actions, this will help the case. Also, witnesses are essential when proving that a contract exists.

If Mark had drawn up a bill of sale for the car to be sold to Mary at $3000 and then agreed to sell it to her, she would be able to show evidence of those actions. However, since he did not, and with no witnesses, Mary does not have much of a case. Mark does not accept any money from Mary, can change the price of the car, and refuses to sell it if he wishes. Mark’s actions are not commendable, but ultimately Mary decided to abandon the sale and buy her car from a used car dealership.

What Are the Components of a Contract?

Four fundamental elements of each contract need to be present for the contract to be valid. Contracts can be verbal, written, expressed, or implied, but they all must feature these components:

Intent

Intent highlights the idea that both parties deliberately “intended” to agree. Therefore, both parties understood, recognized, and respected the fact that they had formed a legally binding contract. The intent is also called “mutual assent” or “a meeting of the minds.” Importantly, when one of the parties is a minor or mentally handicapped, assent is not considered to be present.

Offer

The “offer” identifies the fact that one party offered something in return for something else. For example, an ice cream shop offers cones or dishes of ice cream in return for customer payment. Offers must be phrased clearly to create a legitimate contract. For example, if the ice cream shop does not have a menu with prices marked, customers could assume that the ice cream is free or that they can make up their prices.

Acceptance

When one party agrees to the other party’s terms, “acceptance” occurs. When the ice cream shop customer gave the worker $5.75 for a cone, they accepted the offer. However, if the same customer instead said, “I think I want a cone, but I might want a glass of water,” this is not considered acceptance of the deal. The ice cream shop’s offer must be clear, but the customers must also express their acceptance clearly.

Consideration

The “consideration” in a contract is the goods or services being traded. If one removes consideration from the equation, the product or item is not sold; it is gifted. For example, if the ice cream shop gives out free ice cream cones to janitors on janitor appreciation day, this is a gift because there is no expectation that the janitors will pay for the delicious ice cream. However, when a customer pays $5.75 for a chocolate ice cream cone, the contract has been fulfilled and rendered complete. Consideration, then, must possess value.

Returning to our example of Mary and Mark and the red Honda Civic, it appears that all these elements exist. Mark had the intent to sell, and he accepted Mary’s offer. However, neither the car nor the key has exchanged hands yet, so the consideration is not yet fulfilled.

Unfortunately for Mary, when she shows up to pick up the red Honda from Mark, he changes his mind. Mark says that he was researching and that the car is worth more. Although the parties made a verbal agreement and shook hands, Mark changed the terms of the deal. He now wants $4500 for the car—what he says is the Blue Book value.

Mary tells Mark that Mark’s sudden decision is unfair to her. She wrote the check and took the afternoon off work to drive to San Clemente. Mark has inconvenienced her and, by some accounts, behaved dishonestly. Also, Mary says, why didn’t Mark tell her when he decided to raise the price?

Mark responds that there was never a contract between the two of them. Instead, he sees it as his right to sell the car or decide not to sell it for whatever price he chooses.

What is the Statute of Frauds?

The Statute of Frauds dictates that specific contracts must be written down to be enforced. These contract types include:

Land ownership contracts
Marriage contracts
Real estate contracts
Wills and trusts
Long term contracts

When Should Individuals Contact an Attorney About Verbal Agreements?

If you have questions about an oral contact that you are involved in or a verbal agreement you are considering, contact the law firm of Nakase Wade. Our attorneys will be able to provide helpful advice concerning the nature of the contract, and we will provide the first consultation for free.

We understand the often challenging nature of verbal agreements and have helped many clients make sense of their oral contracts in the past. Contact Nakase Wade today.

Best Free Payroll Software for Small Businesses and Startups in 2025

Find the best free payroll software options for small businesses and startups in 2025 with essential tools and flexible features. Compare user-friendly platforms offering global payments, tax calculations, employee portals, and cloud access at no cost.

What Services Does a California Business Lawyer Provide?

A California business lawyer helps protect your company by providing legal guidance on structure, taxation, contracts, and compliance. Their services ensure you avoid costly mistakes and navigate disputes, allowing you to focus on growth.

Where Can I Find a Business Lawyer?

Find a skilled business lawyer to navigate legal matters like contracts, trademarks, and liability issues. Protect your company with expert legal advice and support.

What Are the Requirements for a Business Contract Termination Letter?

A contract termination letter must clearly state the reason for termination, reference the original contract, and follow required notice procedures. Ensuring proper documentation and adherence to contract terms helps prevent legal disputes and wrongful termination claims.

Are Verbal Contracts Binding in California?

A verbal contract can be legally binding in California, but proving its terms in court is often difficult. Written agreements provide stronger legal protection, reducing risks of disputes and misunderstandings.

Where Can I Find a Business Lawyer Near Me?

Find a business lawyer by seeking referrals, researching credentials, and ensuring they specialize in your industry’s legal needs. Schedule consultations to assess their expertise, compatibility, and pricing structure before making a final decision.

What Is the Statement of Information and When Is It Required?

A Statement of Information is a required filing for California corporations and LLCs, providing key business and leadership details. Filing deadlines vary, requiring annual or biennial submissions to maintain compliance and avoid penalties.

What Is Indemnity and How Does It Apply to Insurance Contracts?

Indemnity protects individuals and businesses from financial loss by ensuring compensation for damages under legal agreements, including insurance contracts. Various indemnity policies cover liability, property damage, and professional risks, with terms defining coverage limits and exclusions.

What Is Gross Profit and How Is It Calculated in Financial Statements?

Gross profit represents the revenue remaining after deducting the cost of goods sold, helping businesses assess production efficiency and pricing strategies. Calculating gross profit involves subtracting direct expenses from revenue, providing insights into cost control and financial performance.

What Is Gross Income and How Does It Differ From Net Income?

Gross income includes all earnings before deductions, while net income is what remains after taxes and expenses. Understanding these figures helps determine tax obligations, loan eligibility, and overall financial health.

What Is Beneficial Ownership Information and Why Is It Important for Compliance

Beneficial ownership information helps prevent financial crimes by increasing transparency in corporate structures. Businesses should stay informed on reporting requirements to avoid penalties and ensure compliance with evolving regulations.

What Is Arbitration and How Does It Resolve Disputes?

Arbitration resolves disputes by allowing a neutral third party to make binding decisions, offering privacy and efficiency over traditional litigation. Businesses and individuals prefer arbitration for its speed, cost savings, and adaptability, ensuring enforceable outcomes across various legal frameworks.

What Is a Corporation, and How Does It Differ From an LLC?

A corporation is a separate legal entity owned by shareholders, while an LLC offers flexible management and pass-through taxation. Corporations require stricter compliance and structured oversight, whereas LLCs provide fewer formalities and adaptable ownership structures.

How Do You Incorporate a Business, and What Are the Benefits?

Incorporating a business creates a separate legal entity, protecting personal assets and offering potential tax advantages. This process enhances credibility, simplifies ownership transfer, and provides growth opportunities while requiring compliance with specific regulations.

How Do You Get an LLC, and What Are the Benefits of Forming One?

An LLC provides liability protection, tax flexibility, and management freedom for business owners. Follow seven simple steps to establish one efficiently.

How Do You Start a Business, and What Are the Legal Requirements?

Starting a business in California requires careful planning, legal compliance, and financial preparation. From selecting a business structure to obtaining permits, tax registration, and funding, each step is crucial for long-term success.

How Do Accrual Accounting and Cash Accounting Differ in Financial Management?

Accrual accounting records transactions when they are earned, while cash accounting records them when money changes hands. Choosing the right method impacts taxes, financial planning, and cash flow management for businesses.

Do I Need a Permit to Operate a Vending Machine?

A vending machine business requires permits, including a business license, EIN, and compliance with state and federal regulations. Proper location approval, ADA compliance, and product labeling are essential for legal operation and profitability.

Are There Grants Available to Start a Business?

Government and private grants provide funding to help entrepreneurs start businesses, with eligibility varying by industry, location, and business type. Opportunities include federal programs, state initiatives, and private grants supporting startups, research, and minority-owned businesses.

What Is a Stock Corporation in California – General Requirements?

A stock corporation in California raises capital by selling shares, granting investors ownership and voting rights while maintaining limited liability. These corporations, classified as C or S, follow specific legal steps, including filing Articles of Incorporation and drafting corporate bylaws.

Is a Contract Valid Only if It Is in Written Form?

A contract can be legally binding whether written or verbal, but some agreements, such as real estate deals, require written documentation. A valid contract must include clear terms, mutual agreement, legal capacity, consideration, and intent to create enforceable obligations.

What Is a Cash Receipt and Why It Matters for Business Transactions

A cash receipt records the exchange of cash during a transaction, detailing the amount, parties involved, and purchase specifics. Maintaining accurate cash receipts supports tax reporting, financial management, and dispute resolution while ensuring compliance with audits.