As a professional, I have come across a lot of content pertaining to the topic of verbal agreement versus written agreement. In this article, I will be discussing the differences between these two types of agreements, and why it is important to have a written agreement in certain circumstances.
A verbal agreement is an agreement that is made between two or more parties through spoken words. It may be made in person, over the phone, or through video conferencing. While verbal agreements may be legally binding in some cases, they are generally difficult to enforce, as there is often no record of the agreement.
On the other hand, a written agreement is a legally binding contract that is recorded in writing. It may include terms and conditions that were agreed upon verbally, but it is a written document that both parties will sign. Written agreements are generally easier to enforce, as there is a clear record of the terms and conditions that were agreed upon.
So, why is it important to have a written agreement in certain circumstances? Here are some situations where a written agreement is recommended:
1. When dealing with large sums of money: If you are borrowing or lending a significant amount of money, it is important to have a written agreement in place to avoid any misunderstandings or disputes.
2. When dealing with property or assets: Anytime you are buying or selling property or assets, it is important to have a written agreement in place to ensure that both parties are clear on the terms of the transaction.
3. When working with contractors or freelancers: If you are hiring someone to work for you on a freelance or contract basis, it is important to have a written agreement in place to ensure that both parties are clear on the scope of work, deadlines, and payment.
4. When entering into a business partnership: If you are entering into a partnership with someone, it is important to have a written agreement in place to ensure that both parties are clear on the terms and conditions of the partnership, including ownership, decision-making, and profit sharing.
In conclusion, while verbal agreements may be legally binding in some cases, it is always recommended to have a written agreement in place in certain circumstances. This not only ensures that both parties are clear on the terms and conditions of the agreement, but also provides a clear record of the agreement that can be used in case of any disputes or misunderstandings.