You might think that a contract must be in writing to be legal. In Oregon, that idea does not hold true every time. Verbal contracts carry just as much weight as written ones, depending on the situation.
Understanding verbal contracts
A verbal contract happens when two or more people agree to do something and promise to follow through. In Oregon, verbal contracts enforce the basic requirements: offer, acceptance, and consideration. Consideration means each side exchanges something of value. Without these elements, a court may not recognize the agreement.
When verbal contracts are allowed
Many everyday agreements stay valid without a written record. You might hire someone to paint your house or sell used furniture based on spoken promises. In Oregon, the law accepts verbal agreements unless a specific law requires writing. However, proving a verbal contract often becomes tricky. Courts rely on witness statements, actions taken, and other evidence to decide if a contract existed.
When verbal contracts are not enough
Some agreements must appear in writing under Oregon law. These include contracts for the sale of real estate, agreements that require more than one year to complete, and promises to pay someone else’s debts. These types of contracts fall under the “Statute of Frauds,” which prevents misunderstandings in important transactions. If a contract fits into one of these categories and only exists verbally, the court likely will not enforce it.
Even though verbal contracts carry legal power, writing agreements gives you better protection. A written contract shows exactly what each side agreed to do. In business dealings, clear written terms help you avoid confusion and prevent costly disputes.
