A breach of the oral contract may occur if there is an agreement between two parties, but one party does not respect the agreed terms.3 min without a written agreement, it is often the word of one party against another. We therefore recommend avoiding oral chords. However, if you enter one, we advise you to send an email or letter to the other party confirming the agreed terms. The more written documentary evidence you have, the better your chances of obtaining oral agreement. In the case of oral contracts, they generally have a shorter limitation period than the time limit for written contracts. This is due to the need for more recent evidence and testimony. Oral agreements are about the fact that it can be very difficult to prove their existence and to prove what the agreed terms are. There are also problems with the parties who have different memories of what has been agreed, or some may be wrong about the terms of the oral agreement. If you enter into court proceedings on the basis of an oral agreement, a judge will review the evidence presented, including the testimony and all relevant documents. Unfortunately, judges do not have magical powers to determine who is telling the truth.
If you try to reach an oral agreement, your testimony will be decisive and a judge will want to know what was agreed, when and why. The judges will also follow common sense and see if what you are saying seems credible. Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. Although oral agreements are binding under English law, the cost, stress and energy you have to spend to prove that the terms of an oral contract will probably be more effort than it is worth it. If you invest time and money in a properly drafted contract, you can be sure that your agreement is robust and applicable. While you can work out an agreement yourself, it`s best for you to consult a professional experienced in developing similar agreements and give you an overview of what you need to pay attention to and what you need to avoid.