Although it isn’t in writing, a verbal agreement is a binding contract. Assuming the validity of the contract, it is binding between two parties. When an oral contract is enforced, it often leads to situations focused on “he said, she said” and it can be challenging to validate if there isn’t proper evidence to support the claim. Because of the complexity of verbal agreements, it is suggested to have a written contract prepared by an attorney.
If you have been in an auto accident, you may try to work things out privately with the other driver outside of an insurance claim and without a case advancing to court. You may even make a verbal agreement with the other driver regarding the terms of your agreement.
There is always a risk of the other driver failing to follow through on the terms of the agreement, and a contract is often only as good as the paper it is written on as they say, so what do you do?
You have different ways to proceed with your claim and to prove that there was a legally binding verbal agreement. Often, it becomes a he said, she said argument, but there are ways that you can gather supporting documentation and evidence to show that there was an agreement and that the other party was pleased with the decisions made.
With the proper evidence, you can make sure that your verbal agreement is followed through. The court can determine that it was binding and that the other party must hold up their end of the bargain verbal agreement is only as good the paper it is written on, correct? Can you file a claim at that point?
We have asked attorney Alaina Sullivan about what you should do. Here is what she had to say:
Was It a Contract?
An agreement stated verbally can be enforced as a contract so long as certain requirements are met:
- An official offer needs to be made by one of the partiesThe other party needs to formally “accept” the offer
- A “meeting of the minds” needs to happen between the parties (meaning they both need to be under the same understanding of the terms of the agreement)
- Consideration must be exchanged as a result of the agreement
Is A Verbal Contract Legally Binding?
If certain requirements have been met, a verbal agreement can be enforced. So, if it can be proven a verbal contract or verbal agreement was made with both parties reaching an agreement, then it is legally binding. Here are the requirements that must be met in a verbal agreement for it to be binding:
- One of the parties must make an official offer
- The other party must formally accept or agree to the offer
- Both parties must have the same understanding of the agreement and the terms of it
- Consideration must be exchanged as a result of the agreement
Usually, verbal agreements or oral contracts are valid and legally binding just so long as they are equitable, reasonable, conscionable, and made in good faith. It can be challenging to dispel defects of a verbal contract because they aren’t in writing.
If you go to court against the other driver, there is a risk of the other party lying about the terms of the agreement. They may say that what you allege they promise that they didn’t promise, or they may say you promised to take care of something that you didn’t.
The other party could even say that a verbal agreement or oral contract was never made.
To successfully enforce a verbal contract after it has been established that the actual contract was created. You will need to do this through the legal system unless you can do this through a third party who was a witness to the agreement.
If you relied on the promise that was made, a court may determine that the verbal agreement was binding and that the other party must follow through with their end of the deal.
As an example, if the other driver gave you the name of a mechanic friend of his who could fix the damages to your car at no charge, so you took your car there and had it repaired only to receive an expensive bill, you can argue that you relied on that statement made by the other party to your detriment.
If it gets to a situation where it is his word versus your word, then you may need witnesses to back up your claim. If you have been in an accident, hopefully there are witnesses, or at least witnesses to your verbal agreement while you are working to resolve the situation.
Always get the names of any witnesses and be sure to get their contact details. If you must file a lawsuit against the other driver, a witness can be very beneficial. They can also be helpful with enforcing a verbal agreement if they were there when the agreement was made. If a witness saw any part of the accident or heard any part of the agreement, they can be very beneficial.
Also, if you recorded the statement it can be helpful. If you are making a verbal agreement with another party, you can use your phone to record the discussion and the agreement. You can then use that recording to support your claim and to help prove that there was an agreement reached and that both parties agreed to what would be done and how it would be done.
Can I Enforce the Verbal Agreement?
Yes, you can enforce a verbal contract once it has been established that an actual contract was created. Odds are, you will need to do this through the legal system unless you are able to do this through a third party. If you relied on the promise made to your detriment, a court may find that the agreement, albeit verbal, is binding.
For instance, if the driver gave you the name of “a guy” he knew who could fix your car up for free, and you went to this guy based on this statement but were handed a hefty bill, you could say you relied on the statement to your detriment.
Use Witnesses
You may be facing a situation of your word versus his word. Who do you trust? Hopefully you got names and contact information of witnesses at the scene of the accident. You will need them for your insurance claim or law suit, should you choose that route. They may need to personally give their statement or sign a sworn affidavit as to what happened.
Was the Statement Recorded?
If you recorded the statement that was made, even though it was not put into writing, you can still try to enforce the recorded statement. Most people do not do this or think to do this, but in the age of wireless media and GoPro cameras it is more frequently happening and can make it easier to prove that something actually happened.
You could also use this evidence
Can I Still File a Claim?
If you would prefer to try to seek compensation for your injuries through their insurance policy rather than through the court system, you can still attempt to file an insurance claim. Hopefully the other party gave you his or her insurance information at the scene of the accident. If he or she did, you can file a claim.
It is recommended you give the other party notice that if he or she does not recognize the verbal agreement that you will be filing a claim on his or her insurance policy if nothing is done. If that person still persists in not abiding by the terms of the verbal agreement, file a claim.
However, if the other person did not provide you with his or her insurance information, you may have to file under your own collision coverage so long as you have this type of policy. Contact your insurance provider if you are unsure of what your coverage includes.
The preferable choice in this situation would be to have the other driver’s insurance information. Just be sure you do notify the driver of your intent and give him or her proper time to remedy the issues before filing your claim. If he or she chooses to continue to ignore the terms of your agreement, proceed with your claim.
Contact an Attorney Today
If you have been in a car accident where you made a verbal agreement with the other driver who is now reneging the terms of your agreement, you should contact an attorney today to discuss your case if you do not currently have a lawyer or have any questions.
A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company. To receive the compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
When you enlist the help of an accident injury attorney, you don’t have to pay anything out of pocket or any cash up front. Instead, a personal injury lawyer will take your case on a contingency basis, which means that your lawyer will not be paid until you win your case and receive a settlement or a judgment for your damages.
There is a strict statute of limitations that applies to personal injury cases. To make sure your claim is underway before time runs out, schedule your free case review today by completing the Free Case Evaluation Form on this page.
