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In many cases, oral agreements may be legally enforceable, but it depends on the type of agreement. In Illinois, based upon the Statute of Frauds, there are certain kinds of contracts or agreements that have to be in writing. For example, a contract for the sale of goods over $500 must be in writing.
Outside of these statutes, if an oral agreement contains an offer, an acceptance, or a consideration, it can be legally enforceable.
Relying on verbal agreements definitely exposes you to certain risks, including contracts that become unenforceable, potentially higher litigation costs, and significant evidentiary hurdles required to prove the terms of an oral contract.
In Illinois, the statute of limitations for a verbal agreement is half that of a written agreement, so you are also racing against time should you need a legal resolution.
Finally, written agreements tend to be quite detailed, and the final pages of written agreements often include information about what happens in the event of a default or inability to pay. When you rely on oral agreements alone, you’re missing this key information, which can lead to significant legal problems.
Craig Donnelly is a determined, experienced business law attorney serving Illinois. Since 2004, he’s helped business owners just like you gather evidence of and prove an oral agreement when terms and promises fall short.
Have questions, or in need of business law assistance? Reach out to Donnelly Law, LLC for an initial consultation today.
Illinois courts start off with the same analysis as they do for written agreements. Did you have an offer? Did you have an acceptance? And were there any considerations or terms of the agreement? Those are the three pillars of any contract.
Next, a court is going to require various levels of evidentiary proof as to what those terms were. In a he-said-she-said situation, it can be very difficult to prove an agreement’s terms, and in many cases, there is simply not enough proof for a court to believe one party over the other.
The court will also consider informal communication between parties (such as texts, emails, voicemails, or electronic calendar invites) that could provide evidence of a contract between you and another party. Courts will also consider whether or not any payments were made and whether there has been a partial or full performance of the contract to date.
In other words, if the agreement involved something that was going to take a few months to complete and no work was ever done, that can raise questions as to whether any agreement even existed.
However, if partial work was done, that does seem to demonstrate an agreement, as there has been a partial performance of the agreement’s potential terms. Next, evidence frequently comes down to third-party witnesses who may be able to support the idea of a verbal contract.
If you have all of these factors, it can help provide enough circumstantial evidence that a verbal agreement likely existed. Still, proving an oral agreement in court can be a very high bar to meet, and whenever possible, an agreement (even a simple agreement) should be in writing.
An attorney can help resolve this type of dispute by carefully and systematically establishing the validity of the oral contract (such as determining if the contract type allowed for an oral agreement under Illinois law), gathering the efficient and appropriate evidence to get beyond the he-said-she-said trap, and navigating any other statutory barriers that may exist.
Trying to resolve a verbal contract suit by yourself often leads to emotional stalemates, unintended waivers of rights, procedural dismissals, and a general inability to provide the type of evidence that proves the existence of a contract to its fullest. This is why it is so important to get the help of an experienced business law attorney to assist you in establishing and proving the existence of a verbal contract.
For more information on Illinois oral contract dispute attorneys, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (630) 274-6196 today.
Craig Donnelly is a determined, experienced business law attorney serving Illinois. Since 2004, he’s helped business owners just like you gather evidence of and prove an oral agreement when terms and promises fall short.
Have questions, or in need of business law assistance? Reach out to Donnelly Law, LLC for an initial consultation today.