Myth Busted: A Verbal Agreement Has No Legal Value

Posted by admin on 2024-01-17 18:30:00

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MYTH: “If there’s nothing in writing, it doesn’t count.”

FACT: Verbal agreements can be legally binding in India—provided they meet certain conditions.

Under the Indian Contract Act, 1872, an agreement becomes a contract when:

• There is an offer and acceptance,
• The parties are competent,
• There is lawful consideration and intent.

While written contracts offer clarity and proof, a verbal agreement—such as an oral promise to repay money or provide a service—can hold legal weight. However, proving it in court can be challenging.

Example: If you lent money to someone and there were witnesses or messages referring to the repayment, you may still have a valid legal claim.

Pro Tip: Always document your agreements in writing, especially in matters of money, property, or employment. It prevents disputes and protects your rights.

Need help validating an agreement or contract? Our commercial law team can guide you.