By law, a promise is usually only enforceable if it is made in exchange for something. This legal concept is called “reflection.” This means that both parties must give some value to an agreement in order for the agreement to be applicable. While this may surprise many people, in Texas, most oral agreements are legal and applicable. Unfortunately, problems arise when an oral dispute is tried. Without written agreement, the contract may be a case of “he said/she said”. In order to avoid such disputes, let us briefly examine the requirements of an oral agreement. It`s always a good idea to make a written agreement. As has already been mentioned, certain types of contracts must be written to be enforceable. Therefore, if you enter into a real estate contract, an agreement to sell goods worth more than $500 or an agreement that cannot be concluded within one year, a written agreement signed. Otherwise, you will not be able to enforce the agreement. Even if the law does not require a written agreement, you should, if possible, take steps to draft the agreement in writing. There is no need for a long, computer-generated contract.
A few words on a towel are often enough. A written report proves the contract and clarifies the obligations of the party. Remember, “Better to be safe than sad.” This guide contains a list of statutes that give consumers the right to terminate a contract or agreement if certain conditions are met. We caution that this is not an exhaustive list. Ideally, trade agreements should be written. Written contracts are the legal ounce of prevention that gives much more than a cure book. Let`s look at another case. A person buys 50 hectares of land from his neighbour for $40,000, but does not execute a written contract. Before the amount is paid, the neighbour withdraws from the contract. This oral contract cannot be enforced by law, as it is a real estate agreement for which oral contracts are expressly excluded by the fraud law.
In the case of oral agreements, the difficulty is to demonstrate that each of these elements existed at the time of the agreement. If you generally agree to do something in exchange for a person`s promise to do something else, there is a legally enforceable agreement. As a general rule, you can impose an agreement if both parties want to make it mandatory. The contract therefore does not need to be concluded in writing to be enforceable. There are exceptions for certain types of contracts listed in a law called the “fraud law.” Only a few oral agreements are considered legally binding under Texas law. An oral contract can be legally binding if it meets certain legal requirements, such as specificity and appropriate consideration.