If two or more parties reach an agreement without written documents, they will enter into an oral agreement (formally known as an oral contract). However, the authority of these oral agreements can be a bit of a grey area for those who do not know the law of contracts. Contractual terms must not be presented in a vague, incomplete or erroneous manner. In other words, there should be an agreement on who the contracting parties are, on each party`s obligations, on the price to be paid and on the purpose of the contract. The conditions between aunt and nephew are very clear; the aunt lends $200 to the nephew for the purchase of a new tire (and nothing else) provided he reseals her 200 dollars at some point (for example. B when he receives his next cheque). The parties, both reasonable, should freely approve the terms of the agreement, i.e. without influence, coercion, coercion or misreprescing of facts. The nephew and aunt accept the terms of the contract without putting pressure on each other and with the intention of fulfilling their obligations. If an oral contract does not interfere with one or more elements of a valid contract, it is likely that a court will declare the agreement inconclusive and unenforceable. Many states have written provisions for certain treaties that believe that oral agreements are insufficient. To be legally applicable, all contracts must meet certain requirements. First, and most importantly, there must be mutual consent or agreement of the parties.
It is sometimes called “meeting spirits.” Second, the agreement must encompass all essential or important concepts that should be clearly defined and clear. For example, descriptions of real estate, price, timing and payment terms, etc. Third, support for the contractual obligations of the parties must be properly considered or assessed. Fourth, the purpose of the contract must not be contrary to public policy. For example, a gambling contract would not apply in a country where there is gambling. Finally, the parties must be competent (reasonable) and legally able to enter into contracts (usually aged 18 or over). In Georgia, an applicant or complainant is responsible for first proving the existence of a contract and its material terms. In the case of written contracts, this task is relatively linear.
However, if the court finds that a provision of a contract is ambiguous and requires a conditional sentence or additional evidence, a jury may be required to decide whether there was a contract and, if so, the essential conditions. In cases where oral agreements are involved, jurors or judges who are considered to be inventors of facts must hear the testimony of the parties and other witnesses and determine the existence and terms of an agreement. For a verbal agreement to be binding, the elements of a valid contract must be present. To illustrate how the elements of a contract create binding conditions in an oral agreement, we use the example of a man who borrows $200 from his aunt to replace a flat tire. And how do you prove an oral agreement? To prove its existence, the applicant may have to provide evidence that goes beyond the oral statements of the parties, which are likely contradictory. Evidence of an oral contract could contain evidence that one of the parties has already completed its transactions in accordance with the terms of the contract. The defendant may, in the course of an infringement proceeding, raise another defence that could render the contract unenforceable or allow the defendant to reject the contract. A common defence is that there was no legally binding contract because the applicant did not establish one or more of the legal requirements. A defendant may, for example, argue that there was no meeting of minds necessary to enter into a valid contract because one or more material conditions were not agreed upon (for example. B price).
Or a defendant could argue that the drafting of the contract was not sufficiently taken into account.