It is about what law states regarding verbal agreements’ enforceability. This means that they can be used to bring a suit against someone who breaches them. Jim and Laura made an oral contract to buy the four-door blue sedan. They also paid a $100 security deposit in order to stop the vehicle from being sold. Stan Salesman will pay Laura and Jim for one day of use. Stan Salesman did not deny receiving the money. However, a receipt has never been issued. If the vehicle was not purchased, Stan Salesman would receive a refund according to the verbal contract. Stan Salesman thus broke the verbal contract, which could have been used as the basis for legal proceedings. Verbal agreements, which are legally recognized contracts that have an unusual enforceability, can be used to establish legal proceedings.
The components of a Verbal Contract
Whatever form the contract takes, it must be legal. Contracts are defined by an agreement that both the parties have accepted and made. Downes & Walker (2019) state that informal promises can be enforced even if there is no agreement. The verbal agreement in the above situation was binding and not subject to revision or negotiation once the parties have committed. Stan Salesman would be responsible for keeping his side of the bargain by selling the vehicle if Laura nor Jim didn’t fulfill their commitments within 24 hours. After the relocation, Stan Salesman would return the $100 deposit that was used to reserve the car for one day. Another important factor is the contract’s consideration. Stan Salesman, Jim and Laura reached a verbal agreement. The deposit amount between the parties was set at $100. Jim and Laura agreed to receive their money back if they could not acquire the vehicle within 24 hours. In court, it must be established that the contracting parties have mental capacity.