Verbal Agreements in Georgia: What You Need to Know

In Georgia, verbal agreements are considered legally binding contracts. This means that if you make a verbal agreement with someone, you are obligated to fulfill your end of the bargain, just as if you had signed a written contract.

However, there are some important things to keep in mind when it comes to verbal agreements in Georgia. Here are some key points to be aware of:

1. Proof of the agreement

One of the main challenges with verbal agreements is proving that they were actually made. Without a written record of the agreement, it can be difficult to demonstrate that both parties agreed to certain terms.

To help avoid disputes over verbal agreements, it is a good idea to take some kind of record of the conversation. This might include an email or text message summarizing the agreement, or even a voice recording of the conversation (with the other party’s consent, of course).

2. Statute of Frauds

Under Georgia law, certain types of agreements must be in writing in order to be enforceable. This is known as the “Statute of Frauds”. The types of agreements that fall under this statute include:

– Agreements for the sale of real property (including land or buildings)

– Agreements lasting longer than one year

– Agreements to pay someone else’s debts

– Agreements for goods worth $500 or more

If your verbal agreement falls under any of these categories, it will not be legally enforceable in Georgia unless it is in writing.

3. Specific performance

If one party fails to fulfill their end of a verbal agreement, the other party may be able to seek specific performance. This means that they can ask a court to order the other party to fulfill their obligations under the agreement.

However, specific performance is not always granted by the courts, and it can be difficult to obtain. For this reason, it is best to try to resolve any disputes over verbal agreements through negotiation or mediation before pursuing legal action.

4. Verbal agreements vs. written contracts

While verbal agreements are legally binding in Georgia, it is generally advisable to use written contracts whenever possible. Written contracts provide a clearer record of the terms agreed upon, and can help avoid misunderstandings or disputes down the line.

If you do decide to use a verbal agreement, make sure that both parties are clear about the terms and expectations. Try to document the agreement in some way, and be prepared to seek legal help if necessary.

Final thoughts

Verbal agreements can be a convenient way to make arrangements, but they do come with some risks. To protect yourself and your business, it is always best to use written contracts whenever possible. If you do make a verbal agreement, take steps to document it and be prepared to seek legal advice if needed.