Verbal Agreements in Maryland: What You Need to Know

When it comes to contracts, verbal agreements can be a tricky subject. In the state of Maryland, verbal agreements are legally binding in most cases, but they can be difficult to enforce without any written documentation. Here`s what you need to know about verbal agreements in Maryland.

What is a verbal agreement?

A verbal agreement, also referred to as an oral contract, is an agreement that is made between two or more parties without any written documentation. These agreements are based on verbal promises and can be made between friends, family members, or business partners.

Are verbal agreements legal in Maryland?

Yes, verbal agreements are legal in Maryland. They are considered to be legally binding contracts, as long as they meet certain criteria. For a verbal agreement to be enforceable in court, the following must be present:

– Offer: One party must make an offer to another party.

– Acceptance: The other party must accept the offer.

– Consideration: There must be an exchange of something of value, such as money or goods.

– Intent: Both parties must have intended to make a legal agreement.

Exceptions to verbal agreements in Maryland

While verbal agreements are generally legal in Maryland, there are some exceptions. Some contracts must be in writing to be enforceable, including:

– Contracts for the sale of real estate

– Contracts that cannot be performed within one year

– Contracts for the sale of goods over $500

It is important to note that even if a verbal agreement is not legally binding, parties may still be able to come to an agreement outside of court.

Enforcing verbal agreements in Maryland

Enforcing a verbal agreement in Maryland can be difficult, as there is no written documentation to support the contract. However, it is still possible to enforce a verbal agreement in court if you can prove that the agreement existed.

To prove the existence of a verbal agreement, you may need to provide evidence such as:

– Witness testimony

– Emails or text messages discussing the agreement

– Recordings of conversations where the agreement was made

It is important to keep in mind that it is always better to have a written contract to avoid any misunderstandings or disputes that may arise.

Final thoughts

Verbal agreements are legal in Maryland, but they can be difficult to enforce without any written documentation. To avoid any potential issues, it is recommended to always have a written contract whenever possible. If you do enter into a verbal agreement, be sure to document the agreement in some way, such as by sending an email summarizing the terms of the agreement. This will help you if you need to prove the existence of the agreement in the future.