If you have ever made an oral agreement with someone to buy something in exchange for money or other items of exchange, you might have formed a contract. The question is whether the elements of a contract were present in the agreement. If those elements were legally satisfied, then you could have made a legally binding agreement. With certain exceptions in the state of Florida, oral contracts are enforceable when the legal standards of a contract are met.
What is a contract?
In its simplest form, the definition of a contract is a legally recognized promise. It is an agreement between two or more parties in which people agree to make a mutually agreeable exchange. A contract is formed when a minimum of three elements are present in the exchange. They are:
- an offer
- an acceptance
- consideration
The parties make and accept an offer after which they make the agreed-upon exchange. However, there are extenuating circumstances which may interfere with the ability of the contract to be executed. No part of the exchange may be illegal and the parties must be competent to make such an agreement.
Additionally, there are legal principles which apply to contracts that could void the contract. And, there may be exceptions to the rule which may apply to your particular contract. You may be unaware of all the state and local laws that may be applicable to your contract. Still, there are variables that could affect the validity and enforceability of the contract.
The details matter!
You should never enter into an oral contract without fully understanding the legal conditions that bind the agreement. Do not verbally agree to any contract that is unclear. Not fully understanding your rights and obligations as a party to a contract can be costly. For example, what do you do if a breach occurs? Therefore, it is always a good idea to get help if you are unsure of your full contractual obligations.
