Are oral contracts legally binding?
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Are oral contracts legally binding?
I have helped start a partnership business and now my partner is excluding me from business meetings, saying I’m lucky just to be a small part. There is no paper documented contract, just an oral agreement. Do I have the right to sue?
Asked on November 21, 2011 under Business Law, Kansas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Oral contracts or agreements are generally binding and enforceable, subject to the following:
1) Certain types of agreements (varying by state) must be in writing to be enforceable. As a general matter, those are agreements which must take more than 1 year to peform; agreements to buy real estate; agreements to assume another's debt(s); and sometimes, agreements involving more than a certain dollar amount (e.g. for more than $5,000). If you re-post your question with more detail about the nature of the agreement and your state, someone can answer whether that is an agreement that would need to be in writing.
2) Of course, proving the existence and the terms of an oral agreement can be difficult, if the other party(ies) the agreement dispute your recollection of it.
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