Louisiana Verbal Agreement Laws: Understanding the Basics
Verbal agreements are commonplace in Louisiana, but they can also be the source of legal disputes. As a business owner or individual, it is important to understand the basics of Louisiana verbal agreement laws to protect yourself and your interests.
What is a verbal agreement?
A verbal agreement, also known as an oral contract, is a legally binding agreement made between two or more parties without a written document. Verbal agreements can be made for various reasons, such as settling a dispute, agreeing to a business transaction, or making a promise.
Are verbal agreements enforceable in Louisiana?
Yes, verbal agreements are enforceable in Louisiana, but certain conditions must be met. According to Louisiana Civil Code Article 1839, verbal agreements are binding if:
– They are not prohibited by law
– The agreement concerns something that is within the power of the parties to do or not do
– The essential terms of the agreement are certain and definite
– The parties intended to be bound by the agreement
What are the essential terms of a verbal agreement?
The essential terms of a verbal agreement must be specific and definite. The terms must include:
– The identity of the parties involved
– The subject matter of the agreement
– The time or duration of the agreement
– The price or compensation involved (if applicable)
If any of these terms are unclear or ambiguous, the verbal agreement may be unenforceable.
What happens if a verbal agreement is breached?
If a party breaches a verbal agreement, the other party may file a lawsuit to enforce the agreement and seek damages. However, proving the terms of a verbal agreement can be difficult, and the burden of proof lies with the party seeking to enforce the agreement.
To avoid potential legal disputes, it is always best to have a written contract that clearly outlines the terms of the agreement. A written contract can help avoid misunderstandings and provide evidence in case of a breach.
In conclusion, while verbal agreements are legally binding in Louisiana, they can be risky. It is essential to ensure that the essential terms of the agreement are certain and definite, and both parties intend to be bound by the agreement. To protect yourself and your interests, consider consulting with an experienced attorney to help you draft a written contract.