An oral agreement to sell refers to an agreement that is made verbally between two parties for the transfer of goods or services. While such agreements are common in business transactions, questions arise about the validity of such agreements when there is no written record of the terms and conditions agreed upon.
In legal terms, an oral agreement to sell is valid and enforceable as long as it fulfills certain criteria. The agreement must meet the requirements of a valid contract, which includes offer, acceptance, consideration, and intention to create legal relations.
The first requirement for a valid oral agreement is the offer. This involves one party making a proposal for the sale of goods or services to the other party. The offer must be clear, definite, and communicated to the other party.
The second requirement is acceptance. This occurs when the other party agrees to the terms of the offer and communicates their acceptance to the offeror. The acceptance must be made unequivocally and communicated clearly to the other party.
The third requirement is consideration. This refers to something of value exchanged between the parties, such as money, goods, or services. Consideration is essential for the creation of a legally binding contract.
Finally, there must be an intention to create legal relations. This refers to the intention of the parties to enter into a legally binding agreement. It is presumed that parties to a business transaction intend to create a legally binding relationship unless there is evidence to the contrary.
While oral agreements to sell are legally valid, they can be difficult to prove in court. The lack of written evidence can make it difficult to determine the exact terms of the agreement and may result in a dispute between the parties. It is always advisable to have a written contract, even if the terms are discussed verbally beforehand.
In conclusion, oral agreements to sell are legally valid when they meet the requirements of a valid contract. However, they can be difficult to prove in court and can lead to disputes between the parties. It is always advisable to have a written contract, even if the terms are discussed verbally beforehand. This will help to avoid a dispute and ensure that both parties have a clear understanding of the terms of the agreement.