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Are Oral Agreements A Legally Binding Contract?

Oral Agreements – How To Protect Your Interests

Are oral agreements considered a legally binding contract? There are evidence and Court decisions that prove they are.

But proving an oral agreement took place is helped hugely by having the terms set out in writing. Even after the fact, a paper trail shows that a series of events have taken place and that an agreement existed.

When entering into an oral agreement, the Solicitors at Dejure Commercial Lawyers suggest that you take the time to send written correspondence outlining the terms of the agreement.

Oral agreements, like written agreements, create an expectation. This assists in clarifying the positions of the parties involved and the terms of the agreement.

Any business owner in this day and age should be working to safeguard their resources and limit their obligations. It is in your interests to take the time to protect your business interests by creating a paper trail.

Too often at Dejure do we see lengthy, costly legal disputes raised because an agreement was not properly outlined or there was a miscommunication between the two parties involved.

We want to avoid at all costs the cases of “he said, she said” type of argument.

Managing both your suppliers and client expectation is crucial.  Even though it’s quicker or easier to discuss the arrangement the time spent proving what was said can be easily managed by confirming all terms in writing.

Even once the terms are set, you may have to revisit the written terms to ensure you meet the minimum expectation.

Dejure Commercial Lawyers specializes in contract law and commercial litigation.

Save yourself the hassle of trying to prove what was said by drafting proper agreements. This will not only set out exactly what is required by both parties but can be crucial to a lawsuit when needing to be later relied on in court.


Get in contact with us today so we can draft your contracts.


Call Boston Commercials on 1300 668 699 for debt collection service in Sydney.


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