Express Verbal Agreement: What It Is and Why It Matters
When it comes to business, agreements are essential. They help ensure that both parties are on the same page and understand what is expected of them. While written agreements are the norm in many industries, verbal agreements can also be binding in certain situations. One type of verbal agreement that can be particularly important is the express verbal agreement.
What is an Express Verbal Agreement?
An express verbal agreement is a type of agreement that is made orally between two parties. It is an explicit agreement that is clearly stated and agreed upon by both parties. Unlike an implied verbal agreement, which can be inferred from the actions or conduct of the parties, an express verbal agreement is explicit in its terms and conditions.
Example: If you agree to perform a service for someone and they agree to pay you a certain amount for that service, this is an express verbal agreement.
Why is an Express Verbal Agreement Important?
An express verbal agreement can be important for a few different reasons. For one, it can help clarify the terms and conditions of an agreement. When both parties clearly state their expectations and agree to them, there is less room for confusion or misunderstandings down the line.
Additionally, an express verbal agreement can serve as evidence in a legal dispute. While written contracts are generally preferred in legal matters, an express verbal agreement can still be binding in certain situations. If there is a dispute over the terms of a verbal agreement, having a clear record of what was agreed upon can be helpful in resolving the matter.
Example: If a contractor completes work on a home for a homeowner and the homeowner refuses to pay the agreed-upon amount, the contractor could potentially use an express verbal agreement as evidence to support their claim.
How to Make an Express Verbal Agreement
If you need to make an express verbal agreement, there are a few things to keep in mind. First, be sure to clearly state the terms and conditions of the agreement. This includes outlining what each party is expected to do and any payment or compensation that will be exchanged.
Additionally, it can be helpful to document the agreement in some way. This could mean sending an email summarizing the terms of the agreement or recording the conversation with the other party`s consent. Having some sort of record can help ensure that both parties are on the same page and can be useful in the event of a dispute.
Final Thoughts
While written contracts are typically preferred in business, there are situations where an express verbal agreement can be just as binding. If you need to make a verbal agreement, be sure to clearly state the terms and conditions and document the agreement in some way. By doing so, you can help ensure that both parties understand the expectations and can minimize the risk of any misunderstandings or disputes down the line.