Can Verbal Agreements Be Enforced in Court?

In business and personal dealings, many agreements are made verbally—whether it’s a handshake deal between friends or an informal arrangement with a contractor. But what happens when one party backs out? Can verbal agreements be enforced in court?

The short answer is yes, but with important caveats. While verbal contracts can be legally binding, proving their existence and terms can be challenging. This guide explores the legal standing of verbal agreements in the UK, when they hold up in court, and how civil law solicitors in Birmingham can assist in disputes.

Are Verbal Agreements Legally Binding?

Under UK contract law, a verbal agreement can be just as enforceable as a written one—provided certain conditions are met. The key elements required for any contract (written or verbal) are:

1. Offer and Acceptance – One party makes an offer, and the other accepts it.
2. Intention to Create Legal Relations – Both parties must intend for the agreement to be legally binding.
3. Consideration – Something of value must be exchanged (e.g., money, services, goods).
4. Certainty of Terms – The agreement’s terms must be clear enough to enforce.

If these elements are present, a verbal contract can be legally valid. However, proving the agreement’s existence and terms becomes the real challenge.

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When Are Verbal Agreements Enforceable in Court?

Here are some scenarios where they may be enforceable:

1. Business Contracts

• A verbal agreement between two businesses for the supply of goods.
• A handshake deal on a partnership or joint venture.

2. Employment Agreements

• Verbal promises about salary, bonuses, or job roles (though written contracts are always safer).

3. Property and Tenancy Agreements

• Short-term rental agreements (though most tenancies require written terms).

4. Sales of Goods or Services

• Agreeing to buy or sell an item without a written contract.

However, certain contracts must be in writing to be enforceable, including:

• Property sales or leases longer than three years (under the Law of Property Act 1925).
• Consumer credit agreements (regulated by the Consumer Credit Act 1974).
• Guarantees (under the Statute of Frauds 1677).

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Challenges of Enforcing Verbal Agreements

While verbal contracts can be binding, they may come with significant hurdles:

1. Lack of Evidence

Without written proof, it becomes a “he said, she said” situation. Courts rely on:

• Witness testimonies
• Emails, texts, or recordings hinting at the agreement
• Bank transactions showing payment

2. Difficulty Proving Terms

What exactly was agreed? Verbal contracts often lack precise details, making enforcement difficult.

3. Statute of Limitations

In the UK, the Limitation Act 1980 gives you six years (or twelve years for deeds) to bring a claim for breach of contract. Delays weaken your case.

4. Credibility Issues

Judges assess witness credibility. If one party’s story seems unreliable, the case may fail.

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How to Strengthen a Verbal Agreement

If you must rely on a verbal contract, take steps to protect yourself:

✅ Get Witnesses – Have a third-party present during discussions.
✅ Follow Up in Writing – Send an email or text summarising the agreement.
✅ Record Payments – Bank transfers with references can serve as evidence.
✅ Use Partial Written Proof – Even informal notes can help.

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When to Consult Civil Law Solicitors in Birmingham

If a verbal agreement breaks down, experienced civil law solicitors in Birmingham can help by:

🔹 Assessing the Agreement’s Validity – Determining if it is a valid contract.
🔹 Gathering Evidence – Finding witness statements, messages, or financial records.
🔹 Mediating Disputes – Negotiating a resolution before court action.
🔹 Representing You in Court – If necessary, presenting a strong case before a judge.

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Example:
John, a small business owner in Birmingham, verbally agreed with a supplier for £5,000 worth of materials. The supplier delivered faulty goods and refused a refund, claiming no formal contract existed.

Solution:
John’s civil law solicitors helped by:

• Gathering WhatsApp messages confirming the deal.
• Providing bank records showing payment.
• Bringing in an employee who witnessed the conversation.

The court ruled in John’s favour, enforcing the verbal agreement.

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Conclusion: Protect Yourself with Expert Legal Advice

While verbal agreements can be legally binding, enforcing them is often an uphill battle. Without solid evidence, disputes can become costly and time-consuming.

If you’re dealing with a broken verbal contract, Aman Solicitors, a leading firm of civil law solicitors in Birmingham, can provide expert guidance. Their team specialises in contract disputes, helping clients gather evidence, negotiate settlements, and pursue court action when necessary.

Don’t leave your rights to chance – consult a solicitor today to ensure your agreements, written or verbal, are legally protected.

Need Help with a Verbal Agreement Dispute?
📞 Contact Aman Solicitors, expert civil law solicitors in Birmingham, for a free consultation.