Dangerous Oral Contracts

A contract is formed any time two people make an agreement to do, or not to do something. Certain types of contracts, involving commercial transactions, must be in writing in order to be valid. But most contracts do not have to be written. A promise that you make is considered to be a contract if the other party relies on your promise. Recently, we have seen girlfriends and boyfriends claim that they were promised certain things by their former mates. These alleged promises called for lifetime care and support or a specific dollar amount to be paid at the end of the relationship. Since, by its nature, an oral agreement has no visible trail, these cases come down to one person’s word against the other. Claims of a contract based upon an oral agreement are difficult to defend against. It is simply not practical to write out a contract, specifying the terms of the relationship with each person you meet. Everyone faces enormous potential liability for these kinds of claims.