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Verbal Agreement in California: What You Need to Know

When it comes to legal contracts, many people believe that a verbal agreement is not enforceable in court. However, this is not entirely true. In California, verbal agreements can be legally binding, but there are some important things to keep in mind.

Firstly, it is always best to get your agreement in writing. Having a written contract can prevent misunderstandings and provide clarity if there is a dispute down the line. However, if a written contract is not possible, a verbal agreement can still be valid as long as there is evidence to support it.

To prove the existence of a verbal agreement, you will need to provide evidence that establishes the terms of the agreement. This could include witnesses, emails, text messages, or any other documentation that indicates the parties involved agreed on specific terms.

It is important to note that certain types of contracts require a written agreement to be enforceable in court. These include contracts for the sale of goods over $500 and contracts that cannot be completed within one year. Additionally, real estate contracts must be in writing to be enforceable.

Another factor to consider is the statute of limitations. In California, the statute of limitations for oral agreements is two years from the date of the agreement. This means that if you wish to take legal action to enforce the agreement, you must do so within two years of the date the agreement was made.

In conclusion, while it is always best to have a written contract, verbal agreements can still be legally binding in California. To ensure your agreement is enforceable, it is important to have evidence of the terms of the agreement and to be aware of any requirements for written contracts. If you have any doubts or concerns, it is best to consult with a legal professional.