What is the difference between an oral and a written contract?
February 14, 2022 | 30,00 EUR | answered by Gertrud Knorr
Dear lawyer,
my name is Anneliese Ehrig and I am facing an important decision regarding a contract that I want to enter into. I have heard that there is a difference between an oral and a written contract, but I am not sure what that exactly means and what implications it could have for me.
Regarding the situation: I am planning to enter into a contract with a handyman for renovation work in my house. So far, we have only discussed the services and the price orally, but I am not sure if that is sufficient or if it would be better to write everything down.
My concerns: I am worried that there could be misunderstandings or discrepancies if we only agree orally. I want to make sure that all details are clear and bindingly established to avoid any future trouble. On the other hand, I do not know if a written contract might be too much effort or if it is even necessary.
My question: What is the exact difference between an oral and a written contract? What are the advantages and disadvantages of both options and what implications could they have on the validity and enforceability of the contract? What solution would you recommend to me, based on my situation and concerns?
Thank you in advance for your support and advice.
Kind regards,
Anneliese Ehrig
Dear Mrs. Ehrig,
Thank you for your inquiry regarding the difference between an oral and a written contract and how this could impact your planned renovation agreement with the craftsman.
In general, a contract is a binding legal transaction between two parties in which they establish certain rights and obligations. The main difference between an oral and a written contract lies in the form in which the agreement is made. An oral contract is made through oral agreements and actions, while a written contract is documented in writing.
In your situation with the craftsman, an oral contract may be more susceptible to misunderstandings or discrepancies, as it can be more difficult to prove the exact agreements when disputes arise. A written contract, on the other hand, provides clear and binding evidence of the agreements made, specifying the rights and obligations of both parties and thus preventing potential conflicts.
Another important aspect is the provability of a contract. In the case of an oral contract, it may be difficult to prove the exact content of the agreement, as it often comes down to one person's word against another's. A written contract, on the other hand, serves as evidence and facilitates the enforceability of the agreements made in court, should legal disputes arise.
Additionally, written contracts often provide more security and clarity for both parties, as all details are documented in writing, reducing room for interpretation. It is also important to note that certain contracts are legally required to be written, such as real estate contracts.
Considering your concerns and the complexity of the planned renovation work, I would strongly advise you to enter into a written contract with the craftsman. This will ensure that all details are clearly and bindingly established, providing you with a legal basis in case of any issues.
I hope that I have sufficiently answered your question with this information. If you have any further questions or need additional advice, I am at your disposal.
Best regards,
Gertrud Knorr, Attorney at Law
