28/08/2026
Does a verbal agreement count as a contract?
When making an agreement, many people assume that a contract only exists once something has been signed. A verbal agreement can still be legally binding if certain requirements are met, including an offer, acceptance, consideration and an intention to create legal relations.
The challenge with verbal agreements is not always whether they are valid, but proving exactly what was agreed if a disagreement arises later.
Some transactions and legal arrangements are subject to specific formalities. For example:
Contracts for the sale or disposition of an interest in land generally need to be in writing and signed,
Guarantees signed by the guarantor where written evidence is usually required,
Regulated consumer credit agreements must comply with statutory requirements,
Wills are subject to separate legal formalities and must be properly executed to be valid.
Whether you're entering into an agreement with a customer, supplier, business partner, or any other party, taking time to record details of your agreements can provide valuable protection.
If you would like advice on a commercial agreement or contract, our Company Law team is here to help: https://bit.ly/4k6cpAf