Can I conclude a contract orally or does it have to be in writing?
September 10, 2023 | 45,00 EUR | answered by Konrad Höfer
Dear lawyer,
my name is Verena Evers and I have a question regarding contract law. Recently, I verbally agreed to a contract with a service provider, however, I was advised by friends afterwards that contracts should always be written down. Now I am worried if my verbally agreed contract is legally binding or if there could potentially be problems.
The situation is as follows: I discussed a project with the service provider and we agreed on the services and the price. Everything was discussed verbally and I gave my consent to the service provider. However, nothing was put in writing and I did not receive a copy of the contract.
My concerns are that I am not sure if the verbally agreed contract is legally binding and if I am on the safe side in case of problems or disagreements. Therefore, I am wondering if it is necessary to document the contract in writing and what steps I should take now to protect my legal interests.
Could you please help me and tell me if my verbally agreed contract is valid and if it would be advisable to put it in writing? What options are available in this case to ensure that my agreement with the service provider is legally secured?
Thank you in advance for your help.
Sincerely,
Verena Evers
Dear Mrs. Evers,
Thank you for your inquiry regarding contract law. It is understandable that you are concerned about whether your verbal contract is legally valid and whether you are adequately protected in case of problems. I am happy to provide you with detailed information and recommendations on this matter.
First and foremost, it is important to know that verbal contracts are generally just as legally binding as written contracts. However, in practice, it may be more difficult to prove the exact agreements and conditions of a verbal contract. Therefore, in case of discrepancies or disputes, it may be helpful to document the contract in writing.
There are, however, some situations where written contracts are strictly required, such as in real estate transactions or prenuptial agreements. In your case, with a project involving a service provider, it may not be mandatory but still advisable to formalize the contract in writing. This way, you will have a clear and traceable documentation of the agreements made, which can serve as evidence in case of a dispute.
To ensure that your agreement is legally protected, I recommend asking the service provider for a written contract. This document should include all essential points such as services, prices, payment terms, deadlines, and other conditions in writing. It is important that both parties sign the contract and each receive a copy.
If the service provider does not agree to a written agreement, you can alternatively draft a confirmation letter in which the agreements are once again documented in writing and confirmed by both parties. Emails can also serve as evidence in some cases if the agreements are documented in writing.
In summary, a verbally concluded contract is generally legally valid, but it is in your best interest to formalize it in writing to be protected in case of a dispute. I therefore recommend documenting the contract in writing and including all important points.
If you have any further questions or need legal assistance, I am at your disposal. I wish you success with your project and a good cooperation with the service provider.
Best regards,
Konrad Höfer, Attorney
