Do Oral Contracts Have Legal Standing in Florida Businesses?

When starting a Florida business, it makes sense to get all the important details down in writing. This cuts out the gray area and provides peace of mind to business partners as they focus on growing what they’ve built.

But, what about situations where businesses or business partners have not put pen to paper regarding certain business matters? There have been conversations and handshake agreements, but are those verbal agreements going to stand up in a court of law?

Yes, Oral Contracts Can Be Enforceable

The shortest answer is yes, an oral contract can have legal standing in Florida. There are caveats to this, however.

The courts will recognize oral agreements that can be fulfilled in under a year as long as both parties fully understand and agree to the terms of an offer and agreement. Terms of the agreement also had to have been finalized and not just discussed in limited detail. These factors can be hard to prove if both parties fail to agree on what was actually discussed and agreed upon, but the law has ways of sorting this out, as well.

Actions Matter With Oral Contracts

When there is a dispute regarding an oral contract, the best way to settle the dispute is by tracking the actions of both parties since the alleged agreement took place. Did both parties act in a manner that supports the details of the agreement?

For example, consider a scenario where Partner A offers to be solely responsible for selecting vendors for the business while Partner B manages the budget. Both sides verbally agree but the agreement is never put in writing. If Partner A proceeds to select vendors and enter into contracts with those vendors on behalf of the business and Partner B does indeed manage the company’s budget, this would indicate that the terms of the agreement are being carried out. Each partner would have difficulty challenging the terms of the agreement as this showcases the terms were understood and followed.

Now if Partner A had not proceeded to select vendors and instead the business as a whole had a variety of partners and employees working to select vendors and enter into contracts with them, the actions would run counter to the oral contract – likely voiding the terms of the oral agreement.

Your Best Bet is to Get it in Writing

With all that said, the clearest choice for any Florida business partnership is to get all your agreements in writing. Leaving key business elements up to chance puts the entire business at risk of litigation. Your protection will only be secured by legal written contracts.

At Bryant Taylor Law, our team can help your business draft legal documents and agreements that support the important work you are doing each and every day. Schedule a consultation with us and avoid leaving your business in the gray area.

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