How Can You Make a Verbal Agreement Legally Binding in Australia?

Question from PAT, How Can You Make a Verbal Agreement Legally Binding in Australia?

Answer from AI:

In Australia, verbal agreements can be legally binding, but proving their existence and terms can be challenging. Here are some general steps and considerations to help make a verbal agreement stick.

1. Evidence of the Agreement

The first step in making a verbal agreement stick is to gather as much evidence as possible about the agreement. This could include:

• Witnesses who were present when the agreement was made
• Any written communication (like emails or text messages) that refers to the agreement
• Any actions that show the agreement was in place (like payments or work done)

2. Consideration

In legal terms, ‘consideration’ refers to something of value that is exchanged in a contract. For a verbal agreement to be binding, there must be consideration from both parties. This could be money, goods, services, or a promise to do or not do something.

3. Intention to Create Legal Relations

For a verbal agreement to be legally binding, both parties must have intended to enter into a legal relationship. This can be difficult to prove, especially in informal or social situations.

4. Certainty of Terms

The terms of the agreement must be clear and certain. If the terms are vague or incomplete, the agreement may not be legally binding.

Note: While verbal agreements can be legally binding, it’s always better to put agreements in writing to avoid disputes.

Legal Advice

If you’re trying to enforce a verbal agreement, it’s a good idea to seek legal advice. A lawyer can help you gather evidence, understand the legal principles involved, and represent you in court if necessary.

Remember, this information is a general guide and may not apply to your specific situation. For personalized advice, consult with a legal professional.

For more information on contract law in Australia, you can visit the Australian Contract Law website.