Contract vs. Verbal Agreement in Florida

In Florida, a contract and a verbal agreement are both legally binding agreements between two or more parties. However, there are several differences between the two.

Formality

A contract is a written agreement that outlines the terms and conditions of the agreement, while a verbal agreement is an agreement that is made orally or through spoken words. In other words, a contract is a formal agreement that is memorialized in writing, while a verbal agreement is an informal agreement that is made through spoken words.

Enforcement

Another major difference between a contract and a verbal agreement is the level of proof required to enforce the agreement in court. When it comes to contracts, there is a written record of the agreement, which makes it easier to enforce in court. Verbal agreements, on the other hand, can be difficult to enforce, as there is often no proof of the agreement beyond the parties’ word.

In Florida, certain types of contracts must be in writing to be enforceable. These include contracts for the sale of real estate, contracts that cannot be completed within one year, contracts for the sale of goods worth $500 or more, and contracts for the sale of securities. Verbal agreements, however, are generally enforceable in Florida, although proving the terms of the agreement can be challenging.

Importance of Writing

It’s important to note that while verbal agreements are generally enforceable in Florida, it is always best to get any agreement in writing. This will help to avoid any misunderstandings or disputes down the line, and will provide a clear record of the agreement if legal action is necessary.

Summary

In summary, the main differences between a contract and a verbal agreement in Florida are that a contract is a formal, written agreement that outlines the terms and conditions of the agreement, while a verbal agreement is an informal agreement that is made through spoken words. In Florida, while both types of agreements are generally enforceable, contracts are generally easier to enforce due to the written record of the agreement.