Is an oral contract legally binding?
August 15, 2023 | 30,00 EUR | answered by Gertrud Knorr
Dear lawyer,
I am contacting you with a question regarding contract law. Recently, I met with a service provider to discuss the provision of a service. During this meeting, we verbally agreed that he would provide the service at a certain price. Unfortunately, we did not document this agreement in writing.
Now I have concerns about whether this verbal contract is legally binding and if I can rely on it in case of problems. I have researched and found that verbal contracts are generally valid, but often difficult to prove. Since I do not have a written agreement, I am worried that the service provider may not adhere to our verbal agreement in the future.
Therefore, my question to you is: Is a verbal contract legally binding? If disputes arise, how can I protect my rights as a contracting party and on what legal basis can I rely? Are there possible solutions to secure the validity of this verbal contract?
Thank you in advance for your help and advice.
Sincerely,
Heike Kroll.
Dear Mrs. Kroll,
Thank you for your inquiry regarding contract law. I would be happy to assist you and clarify your concerns regarding oral contracts.
In general, under German law, oral contracts are legally binding. This means that an oral agreement is just as binding as a written contract. However, the problem often lies in the difficulty of proving oral agreements. In case of disputes, it can lead to a "he said, she said" situation, making it challenging to enforce your rights.
To protect your rights as a contracting party, I recommend documenting all relevant details and agreements in writing. Even if you have already made an oral agreement, you can later draft a written document summarizing the agreements made. Ideally, this should be signed by both contracting parties to confirm the agreement.
Furthermore, you can also rely on other evidence to prove the existence of the oral contract. This may include emails, message exchanges, witness statements, or recordings of phone conversations. These can serve as evidence in case of disputes and help strengthen your position.
If disputes with the service provider arise despite all precautions, you can invoke the principles of contract law. The principle "pacta sunt servanda" applies here, meaning that contracts must be upheld. If an agreement has been validly reached, both parties are bound by it and must fulfill the agreed-upon services.
Overall, I strongly recommend documenting all contracts in writing in the future to avoid potential conflicts and secure your rights as a contracting party.
I hope this information has been helpful to you. If you have any further questions or need legal assistance, I am at your disposal.
Sincerely,
Gertrud Knorr, Attorney at Law
