Contracts are legally binding documents that spell out each party’s obligations to the other signatories. If one party violates the terms of the contract, other parties can sue them for breach of contract. However, if you do not have a written agreement to govern your relationship with a counterparty, you might be wondering if you can still enjoy these protections. While suing for breach of contract without a written agreement can prove more challenging than cases where parties have a written contract, the lack of a written document does not necessarily make it impossible to recover compensation or other relief in court.
Understanding Contract Law
Under contract law, parties may have a “contract” when they reach an agreement to exchange something of value. Parties can form a contract when they meet four basic legal requirements:
- An offer of deal terms and the counterparty’s acceptance of those terms
- Consideration (the thing of value exchanged, such as goods, services, money, or refraining from an act that a party has the right to engage in)
- Mutual intent to enter a contract
- Legal capacity to contract (understanding the nature of the contract and one’s rights and responsibilities under the agreement)
Although having a written agreement can make it easier to prove the existence of a contract between parties, the law recognizes that a contract may exist even in the absence of a written document.
Enforceability of Oral or Implied Contracts
An oral contract refers to an agreement that parties reach through verbal conversations, while an implied contract refers to a contractual agreement based on the parties’ conduct. For example, a painter may enter an oral contract to repaint a homeowner’s house. A customer may enter an implied contract by accepting goods or services from a vendor when they know or should know the vendor expects payment.
Oral and implied contracts can be enforced, although doing so can be more challenging than with a written contract, as the party alleging a breach must first prove the existence of a mutual agreement as well as its terms.
The Statute of Frauds: When a Written Contract Is Required
In contract law, the doctrine of the statute of frauds requires parties to have a written agreement to enforce contract rights in certain types of contractual arrangements. In those types of contractual arrangements, a party cannot enforce a contractual promise without a written agreement containing that promise. Examples of contracts where parties must have a written agreement include:
- Contracts for the purchase and sale of real estate
- Contracts for the purchase and sale of goods with a total value of $500 or more
- Contracts that the parties cannot perform in less than one year
- Contracts to pay another party’s debt
The law does not require parties to have a formal document that serves as a written contract. Instead, other written or printed documents can serve as evidence of the contract.
Proving and Suing for Breach of a Verbal Agreement
To prove a breach of an oral or implied contract, you will need to establish the existence of a contract and its terms, which might require you to furnish evidence like the following:
- Emails
- Text messages
- Witness testimony
- Invoices
- Payment receipts
In a breach of contract claim, you will also need to present evidence proving that the other party breached their obligations under your verbal agreement and establishing the financial harm you sustained due to the breach.
Contact a Contracts Attorney Today
Even when you entered a contract without a written agreement, you may have the right to enforce contractual promises in a lawsuit. Contact Brick Business Law, P.A. today for a free, confidential consultation with a contract litigation lawyer to learn more about the process of pursuing a breach of contract claim without a written agreement.
