Verbal Agreement Law in Ohio: What You Need to Know

When it comes to business transactions and dealings, verbal agreements can be just as binding as written contracts. In Ohio, verbal agreements are legally enforceable, but certain conditions must be met for them to hold up in court.

What is a Verbal Agreement?

A verbal agreement, also known as an oral agreement, is a contract formed through spoken words rather than a written document. Verbal agreements can occur in a variety of settings, from business negotiations to social exchanges.

However, because verbal agreements are not documented, they can be difficult to prove in court. In Ohio, several conditions must be met for a verbal agreement to be enforceable:

1. Mutual Assent

Both parties must agree to the terms of the agreement. This is known as mutual assent or a meeting of the minds. The terms of the agreement must be clear and unambiguous, and both parties must understand and agree to them.

2. Consideration

There must be consideration, or something of value, exchanged between the parties. This can be money, goods, services, or anything else of value. Without consideration, the agreement is not legally binding.

3. Capacity

Both parties must have the legal capacity to enter into the agreement. This means they must be of legal age, mentally competent, and not under duress or undue influence.

Enforcement of Verbal Agreements

If a verbal agreement meets all of the above conditions, it is legally binding in Ohio. However, if one party breaches the agreement, it can be difficult to prove the terms of the agreement in court.

To enforce a verbal agreement, the party seeking enforcement must provide evidence that the agreement existed and that the terms were clear and agreed upon by both parties. This can be done through witness statements, correspondence, and any other evidence that supports the existence and terms of the agreement.

Final Thoughts

Verbal agreements can be an effective way to enter into agreements, but they can also be risky. Because they are not documented, they can be difficult to enforce in court. If you are considering entering into a verbal agreement, it is important to understand the conditions required for it to be legally binding in Ohio.

If you need legal advice or assistance with a verbal agreement, it is recommended that you consult with a lawyer. A lawyer can help you understand your rights and obligations under Ohio law and help you enforce or defend a verbal agreement in court if necessary.