Verbal Agreements in Georgia: Understanding the Basics
Verbal agreements, also known as oral contracts, are legal agreements that are made verbally between two or more parties. These types of agreements are commonly used in everyday transactions, especially in small businesses, and can be just as binding as a written contract. However, in Georgia, there are some rules and regulations surrounding verbal agreements that you should be aware of.
The statute of frauds is a law that requires certain types of contracts to be in writing to be enforceable. In Georgia, contracts for the sale of real estate, contracts that cannot be performed within one year, and contracts for goods worth $500 or more are required to be in writing. Verbal agreements for these types of contracts are not legally enforceable.
However, there are certain situations where verbal agreements are enforceable in Georgia. For example, if two parties agree to a service or exchange of goods for less than $500, a verbal agreement can be legally binding. Additionally, if a verbal agreement is made and one of the parties has partially fulfilled their obligation, it can be enforced.
It`s important to note that while verbal agreements can be legally binding, they can be difficult to prove in court. This is because there is no physical evidence of the agreement, and it can quickly turn into a he-said-she-said situation. To protect yourself, it`s always a good idea to put any agreement in writing, even if it`s just a simple email outlining the terms.
If you do find yourself in a situation where a verbal agreement has been breached, you may be able to take legal action. However, it`s always best to consult with an attorney who can review the specifics of your case and advise you on the best course of action.
In conclusion, while verbal agreements can be legally binding in Georgia, it`s always best to put any agreement in writing to avoid any misunderstandings or disputes. If you do choose to make a verbal agreement, make sure it`s for an amount less than $500 and ensure that both parties understand and agree to the terms. And if you do find yourself in a breach of contract situation, don`t hesitate to seek legal advice.