In any business transaction or contract, it is important to have a clear understanding of the terms and conditions through a written agreement. However, there are instances when verbal agreements are made, and this raises questions about the enforceability of these agreements in Australia.
Verbal agreements are not uncommon, but they can be difficult to prove in court. In most cases, courts require physical evidence to support the agreement, such as witnesses or written records of the agreement. When it comes to verbal agreements in Australia, there are some basic rules to follow to ensure that you can enforce your agreement in court.
One essential rule in verbal agreements is to be clear about the terms and conditions of the agreement. It is crucial to establish and agree on the essential components of the agreement, such as what goods or services will be provided, the price, mode of payment, delivery date, and other important details. To avoid misunderstandings, parties involved in a verbal agreement should put their agreement in writing or confirm the details via email or text message.
Another important consideration for verbal agreements is the legal capacity of the parties involved. For instance, minors, individuals with mental health conditions, or individuals under the influence of drugs or alcohol may not have the legal capacity to enter a verbal agreement. In Australia, this can be determined based on the Mental Health Act and the Guardianship and Administration Act.
When it comes to enforcement, verbal agreements may hold up in court if there is a clear understanding of the agreement`s terms and conditions. However, the burden of proof rests on the party seeking to enforce the agreement. This means that it is essential to keep as much evidence as possible, such as copies of emails or text messages or witness statements.
In conclusion, while written agreements are always preferable, verbal agreements can still be enforceable in Australia if the parties involved can establish the terms and conditions clearly. It is important to be aware of the legal capacity of the individuals involved in the agreement, and to keep as much evidence as possible to support the agreement in court. By following these rules, parties can enter into verbal agreements with confidence, knowing that their agreements can be enforced if necessary.