Verbal Agreements in Small Claims Court: How Valid Are They?
Small claims court is a judicial procedure where individuals or small businesses can present their claims in front of a judge without the need for an attorney. It is designed for settling disputes where the amount in question is usually limited to a specific threshold, which varies by state, but often falls between $2,500 and $10,000.
One common question that often arises in small claims court is whether or not verbal agreements are legally binding. In general, oral agreements are enforceable just like written contracts but it can be more difficult to prove their terms and existence.
Here are a few things to consider if you find yourself in small claims court as either a plaintiff or defendant in a case involving verbal agreements:
What is a Verbal Agreement?
A verbal agreement is a spoken or oral promise between two or more parties that outlines specific terms and conditions. While it may not be written down, it carries the same legal consequences as a written contract.
For a verbal agreement to be legally binding, it must contain all the essential elements required for a contract. These elements include an offer, acceptance, consideration, and the intention to create a legal relationship. Without these elements, no agreement can be enforced in small claims court.
Proving a Verbal Agreement
To prove a verbal agreement, you need to provide evidence that it exists and that it is legally enforceable. In general, the burden of proof lies with the plaintiff, who must show that the defendant made a promise or agreement and then failed to fulfill it.
While a written contract can be presented as evidence in court, a verbal agreement can be more challenging to prove. Typically, parties will rely on witness testimony and any written documentation that supports the agreement`s existence, such as emails or text messages.
Enforcing a Verbal Agreement
If you can prove that a verbal agreement exists and that it is legally enforceable, the court can award damages, just like with a written contract. The amount of damages will depend on the specifics of the case and what was agreed upon by the parties.
However, even if you win the case, collecting damages may be challenging if the defendant is unable or unwilling to pay. In such cases, you can seek legal help to enforce the court`s decision.
Conclusion
While verbal agreements can be legally binding in small claims court, it`s important to ensure that all essential elements of a contract are present for it to be enforceable. If you are involved in a dispute, seek legal advice to help you determine the validity of a verbal agreement and your chances of winning the case. Always remember to document any agreement, whether verbal or written, to make it easier to prove its existence in court.