Can You Sue Someone Over a Verbal Agreement?
Can you sue someone over a verbal agreement? Learn how oral contracts are enforced, what evidence is needed, and the legal process for suing over a breached verbal contract. 6 min read updated on February 04, 2025
Key Takeaways:
- Verbal Contracts Are Legally Binding: In many cases, verbal agreements are enforceable, though proving them in court can be challenging.
- Evidence is Crucial: Witnesses, correspondence, payment records, and conduct demonstrating agreement can help substantiate an oral contract.
- Statute of Frauds Exceptions: Some contracts, such as those involving real estate, debt assumption, or goods over $500, typically require written agreements.
- State Laws Vary: Some states have specific legal provisions regarding the enforceability of verbal contracts.
- Steps for Suing Over a Verbal Agreement: Establish that a contract existed, prove a breach, and demonstrate damages.
- Statute of Limitations: The timeframe for filing a lawsuit varies by state, so acting promptly is important.
What Can I Sue for With a Verbal Contract Violation?
With an oral contract, you can sue for breach of contract just as you would with a written contract. There's a common misconception that all contracts must be in writing to be valid. Writing out a contract is a good idea, mainly because you will have proof that the contract exists. You could also record the contract on video, as this may be considered just as good as writing in court cases.
When it comes to state law, few subjects require a written contract. For instance, in Illinois, real estate contracts must be in writing as well as anything that must occur within a year. This is due to the Statute of Frauds, which governs five categories:
- Contracts that pertain to selling a land interest.
- Contracts that involve a performance that lasts longer than one year.
- Contracts that assume responsibility for someone else's debts.
- Contracts that deal with the sale of goods worth more than $500.
- Contracts that contain promises made by administrators or executors of an estate.
However, you can create, amend, or change a contract's terms nonverbally simply via your conduct. For example, if you agree to give a business 100 items for a certain price each month but end up accepting less money over time, you may waive your claim to the original sum without ever stating so outright, because you continued to deliver the number of items and accepted the lesser payment.
How to Prove a Verbal Agreement in Court
Since verbal contracts lack written documentation, proving their existence can be difficult. Courts typically look for supporting evidence such as:
- Witness Testimony: If a third party was present when the agreement was made, their testimony can support your claim.
- Correspondence: Emails, text messages, or recorded conversations that reference the agreement may be strong proof.
- Performance History: If one party has partially fulfilled the contract terms (e.g., delivered goods or services), it can demonstrate the existence of an agreement.
- Payment Records: Bank statements, checks, or receipts showing transactions related to the contract can support your case.
- Conduct of the Parties: Actions consistent with the contract terms may indicate mutual understanding and agreement.
Can I Sue for Breach of Verbal Contract?
Yes, you can sue for breach of verbal contract even if a handshake agreement didn't occur. If one party accepted another party's services, then the parties most likely reached an enforceable agreement. As long as one party received the other's services, the receiving party benefited and should pay the party that delivered the service.
Even though verbal contracts are as valid as written ones are, oral contracts are more difficult to prove. A handshake doesn't have legal significance, but having a witness can strengthen your case. One element that can strengthen the argument is when one of the parties has fully performed its agreed-upon service.
Legal Process for Suing Over a Verbal Agreement
If a verbal contract has been breached, you may take legal action by following these steps:
- Gather Evidence – Compile witness statements, emails, texts, or financial records that support the contract’s existence.
- Send a Demand Letter – A formal demand requesting the other party to fulfill their contractual obligation may resolve the issue without litigation.
- File a Lawsuit – If the dispute persists, file a breach of contract claim in small claims court (if the amount is below the state threshold) or a higher court if necessary.
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Present Your Case – In court, you will need to demonstrate that:
- A valid contract existed.
- The other party breached the contract.
- You suffered damages as a result.
- Obtain a Judgment – If successful, the court may order monetary compensation or require the breaching party to perform their obligation.
Breach of Oral Contract in Florida
In Florida, oral contracts are enforceable. To prove a breach of oral contract, a plaintiff must state facts that show that both parties agreed to a partnership and had no uncertainties. The oral contract can undergo the same scrutiny as written contracts, including offer, acceptance, consideration, and speculation of the terms. Also, the party who asserts the oral contract must prove that it exists by providing evidence.
To claim an oral contract breach, the afflicted party must show three elements:
- A valid contract formed.
- A material breach occurred.
- Damages were suffered.
Statute of Limitations for Verbal Contracts
The time frame to sue for a breach of verbal contract varies by state. Generally:
- Most states have a statute of limitations of 2 to 6 years for oral contracts.
- If the contract involves debt repayment, services, or real estate, different statutes may apply.
- Missing the deadline means you lose the right to sue, so it’s crucial to act promptly.
Consult an attorney to determine the applicable statute of limitations in your state.
Special Issues in Breach of Oral Contract Cases
In the case of Crozier v. Sauers, the Appellate Division of the New York Supreme Court weighed in on what happens when a dispute occurs between family and friends in regard to oral contracts.
The plaintiff and his wife were friends of Sauers, the defendant. The plaintiff stated that Sauers asked him for a $180,000 loan to expand the defendant's automotive glass company. Sauers stated that the loan's purpose was to help him purchase an existing auto glass company as well as to provide a down payment on two other corporate buildings.
The exhibits and record at the trial showed that the plaintiff wrote four checks to T&M Corp., which was the name of the defendant's company. The defendant deposited the checks into the corporate account and used the account to purchase the company but not the other two buildings. The defendant testified that the rest of the money went toward corporate expenses, but the plaintiff didn't argue or provide contrary evidence.
In response, the plaintiff alleged, according to an oral agreement, the defendant agreed to be liable for the loan if the company couldn't repay it. The court ruled in favor of the plaintiff because the defendant was liable for the outstanding loan balance. There was no breach of an oral contract because the funds went toward corporate purposes.
Challenges in Enforcing a Verbal Agreement
Even when verbal agreements are enforceable, proving them in court comes with challenges:
- Lack of Tangible Proof: Unlike written contracts, oral agreements rely on recollections, which can be disputed.
- He-Said, She-Said Dilemmas: If both parties provide conflicting statements, courts may struggle to determine the truth.
- State-Specific Exceptions: Some contracts require written documentation under the Statute of Frauds, making oral agreements unenforceable.
To avoid complications, it’s always advisable to document agreements in writing whenever possible.
Frequently Asked Questions
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Can you sue someone over a verbal agreement if there were no witnesses?
Yes, but it may be more difficult to prove. Other forms of evidence, such as text messages, emails, and payment records, can support your case. -
What is the statute of limitations for suing over a verbal contract?
The timeframe varies by state, typically ranging from 2 to 6 years. Check your state's specific laws to determine the deadline. -
What happens if the other party denies the existence of the agreement?
If there’s no written proof, courts will consider other evidence, such as actions taken under the agreement, payments made, and witness testimony. -
Can a verbal agreement override a written contract?
In most cases, written contracts take precedence. However, verbal modifications may be enforceable if both parties act on them. -
Is a handshake considered a legally binding contract?
A handshake alone does not constitute a contract, but it can be a sign of mutual agreement. Courts look at the full context, including evidence of an agreement and subsequent actions.
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