Most significant transactions involve business contracts, whether you are buying a car or placing an order for your company. However, there are some people in Miami and other parts of the country who still believe a verbal contract is as good as one that’s on paper. If you agreed to do business with only an oral contract, are you able to have it enforced in the event of a contract dispute? How does business litigation work when there is no paper contract? Isn’t this type of agreement too old-fashioned for today’s world?
According to USA Today, some oral contracts may be enforceable under Florida law. However, defending your side in a contract dispute will be difficult, if not impossible, when it is literally your word against your opponent’s. You will need to provide sufficient evidence that there was a breach of contract and that you and the person you were doing business with had agreed upon clear terms.
A law called the Statute of Frauds delineates certain business transactions that are only valid in written contracts. Some of these include:
- All transactions involving real estate
- Jobs that are expected to take more than a year
- Agreeing to take over another person’s debt
- Large loans or extensions of credit
- Business transactions exceeding $500
It may be in your best interests to insist upon a written contract before agreeing to work with anybody. Oral contracts could provide the other party an easy opportunity to get away with fraud. The content here is only being provided for informational purposes, and is not intended as legal advice.