People are often surprised to find out that an oral contract can be legally enforceable, as we discussed earlier this month. In simple terms, the agreements can be enforced if both parties fully understand and agree to the terms – but there are exceptions.
In Florida, there are some types of contracts that must be in writing in order to be legally enforceable. Aligning your agreements with the standards we discuss here will protect you and your business from litigation down the road.
Contracts Lasting More Than a Year Must Be In Writing
Florida law requires that any contract that cannot be fulfilled in less than a year must be in writing. Allowing oral contracts that span over twelve months to stand leaves too much up to chance and memory.
Understanding the terms is necessary for an oral contract to be enforceable, but putting it up to both parties to actually remember those details a year later puts an unnecessary burden on the two parties and the courts.
This will generally include any commercial or residential lease agreements as those will often expand beyond a single twelve-month period. Other examples of contacts that must be in writing include:
- Real estate transactions
- The sale of goods valued at $500 or more
- A contract to payoff another party’s debt
- Health care contacts
- Employment contracts extending beyond one-year
Business Partnership Agreements Can Be Completed Verbally
As we noted in our previous post, business partnership agreements and the duties of the partners can be agreed upon orally. However, you lose certain protections by failing to sign a contract.
The course of conduct after a verbal agreement will impact the terms of the agreement itself, so failing to follow the understood and agreed-upon terms will result in the contract being null and void.
Even an employment contract can be verbal if the employment term lasts less than a year, but employees have rights in Florida. If you verbally agree to hire someone to work for you through the holidays but then decide to let them go before the holidays are finished, the employee may have a right to sue for at least the amount they would have been owed during the originally agreed-upon period.
Get Your Contracts in Writing
Even if you have a right to commit to certain oral agreements does not mean you should. At Bryant Taylor Law, our team helps businesses draft contracts that legally bind both parties and provide the necessary support should litigation arise. Contact our team and make sure your contracts have a legal ground to stand on.
Bryant Taylor
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