What is an agreement?


Verbal agreements are a common practice, and in many instances, they hold legal weight. However, there are specific scenarios where a verbal agreement might not be legally binding, particularly in the United States. Here’s a breakdown of when a verbal agreement may not carry legal weight.

  • Dealing with Real Estate:
    • If you’re talking about selling or transferring land or real estate, better get it in writing. Verbal won’t do the trick here.
  • Lifetime Commitments:
    • A lifetime is a long time! So, if your agreement goes beyond someone’s lifetime (like copyright stuff), you might need to put it on paper.
  • Big-Ticket Goods:
    • Selling something fancy worth more than $500? A verbal agreement might not be enough to seal the deal.
  • Love and Legal Stuff:
    • Anything related to marriage or divorce usually needs more than just words – get those details written down.
  • Long-Term Plans:
    • If your agreement spans more than a year, consider putting it in black and white. Verbal might not hold up.
  • Debt Dilemmas:
    • Promising to pay someone else’s debt? You guessed it – better to have it in writing.

What’s a Contract?

  • It’s like a deal memo, but written down. A contract spells out who’s doing what and who’s responsible for what. It’s the game plan in writing.

Why Do They Matter?

  • When things get messy, a contract is your superhero cape. It’s not just paper; it’s legally binding. If someone messes up, you can use it as proof and even take legal action.


  • Legal Muscle:
    • Your contract isn’t a pushover; it’s legally strong and enforceable.
  • Paper Trail:
    • Think of it as your deal’s receipt. Having things written down keeps everyone on the same page.
  • Peace of Mind:
    • Less risk, fewer fights. A clear contract helps avoid confusion and disputes.
  • Quick and Easy:
    • Use a template or an online portal, and you’ll breeze through the contract process.
  • No Guesswork:
    • A written contract lays it all out – no more confusion about who’s doing what.

So, next time you’re diving into a deal, remember: Contracts aren’t just paperwork; they’re your legal superhero sidekick.


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