Binding Contracts

• A verbal agreement is as legally binding as a written contract, though it can be harder to prove. To be able to take someone to court, you must first determine if your agreement meets the standard of a contract under the law. For an agreement to be contractual, one party must make an offer and the other party accepts it. The offer can be to deliver goods and services or a promise to refrain from doing something. The second factor in a contractual agreement is consideration: an exchange of value. A promise of a gift or a statement of future generosity isn't enforceable because both parties didn't receive something of value. However, certain contracts must be written to be valid, such as real estate sales, sales of property valued greater than $500 and transfer of copyright. The time allowed to take a case to court is smaller than in a written agreement.
  
  

Gathering Evidence

• Reneged verbal agreements that can be considered to be contractually binding are enforced in court as a breach of contract. Small claims court is a streamlined way to resolve contract disputes without lawyers, though the maximum amount for which you can sue varies from state to state. Contract disputes over $10,000 should be handled by a qualified attorney in a municipal court. In any court, you'll need evidence to back the verbal agreement even if you don't have a signed contract. Think about what defenses the reneger might raise and gather evidence to dispute their claims. Evidence can be notes taken at the time of the original discussion, canceled checks or photographs. You can also use the testimony of witnesses to the agreement to prove the terms. If a witness isn't able to testify in person, have her submit a notarized affidavit instead if the laws of your state allow it.
  
  

Your Day in Court

• On the day of trial, some jurisdictions ask complainants to agree to mediation with a neutral third party to settle the case. If your evidence is weak, consider settling at this time. If arbitration fails, your case will go to court that day. When in front of a judge, make your case clearly and directly. Describe the terms of the oral agreement: the offer, acceptance and the value exchanged. Show how the defendant broke or did not fulfill the contract. In some cases, their failure to complete their side of the agreement may have cost you additional money and you may be able to sue for damages above the initial consideration but be prepared to prove the cost. Most states allow an appeal within 45 days of the case.