When you make a verbal agreement with a family member, is the agreement binding?
Verbal agreements come in all shapes and sizes ranging from “I will mow the lawn if you wash the car”, or “I will give you pocket money if you do your chores”; to the more complex agreements like “I will pay for the plane tickets, but you need to pay me back”, or “I will give you the deposit to buy a house, but the money will be taken out of your inheritance”.
Verbal agreements can be enforceable under contract law. To be binding, a verbal agreement has to have the following elements: offer and acceptance, consideration needs to be exchanged, each party must have capacity to enter the agreement, and there must be an intent that the agreement is binding, and the contract will be completed.
Verbal family agreements are typically difficult to enforce as there is often insufficient intent and lack of clarity. We therefore recommend that you document these agreements in writing.
If you wish to enter into an agreement or enforce an agreement with a family member, we recommend you contact us.
Contact our office today on 02 66 487 487.
This article is intended to be for information and educational purposes only and cannot be relied upon as legal advice. The information may not apply to your circumstances or to your particular situation. If you need specific advice or you have any questions, we welcome you to contact us directly.
