Is an oral contract as binding as a written contract?
April 9, 2024 | 40,00 EUR | answered by Konrad Höfer
Dear Lawyer,
I have a question regarding contract law that has been weighing on my mind. My situation is as follows: a few weeks ago, I verbally agreed with a company on the delivery of goods at a certain price. Unfortunately, this verbal agreement was not documented in writing. Now, I am wondering if a verbal contract is just as binding as a written contract.
The current situation is as follows: the company has delivered the goods, but is suddenly demanding a higher price than agreed upon. Since we do not have a written contract, I am uncertain whether I can legally challenge this price change. I am concerned that I may be at a disadvantage due to the lack of a written contract.
My question to you as a lawyer specializing in contract law is: what legal options do I have in this situation where a verbal contract was made? Is a verbal contract as binding as a written one? Are there any specific regulations or laws that apply in such a case?
I would greatly appreciate it if you could provide me with some information on this matter, as I am unsure of how to proceed. Thank you in advance for your assistance.
Sincerely,
Dirk Meier
Dear Mr. Meier,
Thank you for your inquiry regarding contract law. It is understandable that you feel uncertain in your situation, as the verbal agreement was not documented in writing and the company is suddenly demanding a higher price. I will be happy to explain in detail the legal options you have in this situation.
First of all, it is important to know that a verbal contract can be just as binding as a written contract. The conclusion of a contract can generally be done verbally, as long as no legal written form is required. In your case, where you verbally agreed with the company on the delivery of goods at a certain price, there is basically an effective contract.
However, proving a verbal contract can be more difficult than proving a written contract. In case of dispute, the existence of the verbal contract must be proven, for example, through witnesses or other evidence. If the company is suddenly demanding a higher price, even though a different agreement was made, I recommend that you first have a discussion with the company and refer to the original agreement. Try to reach an agreement and clarify the situation.
If no agreement is reached and the company insists on the higher price, you have legal options as a contracting party. For example, you could judicially demand the fulfillment of the originally agreed price or claim damages. In your case, it would be advisable to seek advice from a lawyer to assess your rights and claims and initiate possible legal actions.
It is also important to note that German law has some special regulations regarding contract law that may apply to verbal contracts. For example, the Civil Code (BGB) regulates the general provisions of the sales contract in sections 433 ff., which also apply to verbal agreements.
In conclusion, I recommend documenting contracts in writing in the future to avoid misunderstandings and disputes. A written contract provides more clarity and security for both parties.
I hope this information has been helpful. If you have any further questions, please feel free to contact me.
Sincerely,
Konrad Höfer
Contract Law Attorney
