This is not to say that oral contracts should be opted for. A letter is always better and the costs and turbulence of trying to get a verbal agreement are quickly evident. Such useful clauses, such as the provision of arbitration and mediation or legal fees for the dominant party, may be included in a written contract and cannot be applied in an oral contract. Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. For example, employers, workers and self-employed contractors may consider it invaluable to document the terms of their agreements in an employment contract or service contract. While a verbal agreement may be legally enforceable, it can be difficult to prove in court. Too often in contractual verbal situations, the evidence turns into a “he said, he said” situation that makes it difficult to know exactly what was agreed between the parties to the oral contract. As a general rule, the parties do not agree on what the terms of the contract were or how they should be interpreted. “Clear words” are needed for exclusion clauses to work. If these words are not written, you have a hard time proving what the clear words were.
Especially if you are trying to exclude liability for negligence. We are talking about why you should not rely on oral contracts. What is behavior? It may be an act or inaction that proves to a judge or jury that an agreement has been reached. An example would be that I was painting your house after providing me with color, tools and access and telling your wife that you intend to pay me the current rate. (An oral contract is that you told me that you would pay me the way forward, and I accepted orally.) The parties, both reasonable, should freely approve the terms of the agreement, i.e. without influence, coercion, coercion or misreprescing of facts. The nephew and aunt accept the terms of the contract without putting pressure on each other and with the intention of fulfilling their obligations.