An oral agreement is any type of agreement that is made verbally between two or more parties. The agreement can be made in person, over the phone, or even through video chat. While oral agreements are legally binding, they can be difficult to enforce. This is why many legal professionals recommend that all agreements should be put in writing.
There are several reasons why parties may choose to make an oral agreement. For example, parties may not want to take the time to prepare a written agreement, or they may not have access to a printer or scanner to sign the document. In other cases, parties may feel that the matter is too informal to require a written agreement.
However, it is important to note that oral agreements are not always enforceable. The main reason for this is that it can be difficult to prove the terms of an oral agreement. Unlike written agreements that can be easily referred to, oral agreements rely heavily on the memory of the parties involved. This can lead to confusion or a lack of clarity regarding the terms of the agreement.
In order to avoid discrepancies, parties should take steps to ensure that all terms of an oral agreement are documented as soon as possible. This can be done by creating a written summary of the agreement and sending it to the other party for confirmation. This will help to avoid misunderstandings and ensure that all parties are on the same page.
In some cases, parties may choose to record an oral agreement. While this can be helpful, it is important to note that recording conversations without the other party`s consent may not be legal in all jurisdictions. Parties should always ensure that their actions are legal and ethical before recording any conversations.
In conclusion, oral agreements are a useful tool for many parties. However, it is important to remember that they are not always enforceable and can be difficult to prove in court. Parties should take steps to document the terms of the agreement as soon as possible to avoid any confusion or misunderstandings. Writing down a summary of the agreement and sending it to the other party for confirmation is one way to ensure that all parties are on the same page. Ultimately, parties should always consult with a legal professional if they have any questions or concerns regarding an oral agreement.