In the fast-paced business environment of London, verbal contracts are not uncommon. However, what happens when an informal agreement hits a roadblock? We explain the legal implications, and available remedies when a verbal contract is breached. If you’re facing such a situation, then it is best to seek independent legal advice.
The Nature of Verbal Contracts
Verbal contracts, while not written down, are still legally binding in England and Wales. These agreements, based on spoken words, carry obligations just like written contracts. They can range from simple transactions to more complex arrangements. It’s essential to remember that even though they lack the formality of written contracts, they hold legal weight.
Express and Implied Terms in Verbal Contracts
When it comes to verbal contracts, terms can be either express or implied. Express terms are explicitly stated agreements, such as the price agreed upon in a sale. Implied terms, on the other hand, are not explicitly stated but are understood to be part of the agreement. These could include the expectation that a purchased item is fit for its intended purpose. For consumer to business contracts, the Consumer Rights Act 2015 stipulates a number of implied terms. Understanding these terms is crucial in assessing breaches and seeking remedies.
Breach of Verbal Contract and the Legal Ramifications
A breach occurs when one party fails to fulfill its obligations as agreed upon in the verbal contract. This breach can lead to legal consequences. If you find yourself on the receiving end of a breach, you have the right to take action. It’s important to note that proving a breach in a verbal contract can sometimes be challenging due to the lack of written evidence. However, it’s not impossible, and seeking legal advice is advisable.
Remedies for Breach of Verbal Contract
In the event of a breach, you have several options for seeking a remedy. These may include:
- Negotiation and Resolution: Often, a direct conversation between parties can lead to a resolution. Misunderstandings can be clarified, and solutions can be reached amicably.
- Mediation: If direct negotiation doesn’t yield results, mediation involves a neutral third party who assists in finding a solution acceptable to both parties. Mediation can be highly successful. For more information, read our blog Mediation and Alternative Dispute Resolution (ADR).
- Legal Action: If the breach cannot be resolved through negotiation or mediation, legal action might be necessary. The first step is for a Letter Before Action to be sent to the party breaching the verbal contract. A free template Letter Before Action can be found by clicking on this link.
Seeking Professional Assistance:
When dealing with a breach of a verbal contract, it’s highly recommended to seek legal advice. Mr Usman Anwar, Legal Director at Anwar Legal, specialises in contract law and can provide guidance tailored to your situation. They can help you understand your rights, evaluate the strength of your case, and explore the most suitable remedies.
It is important to understand if your claim is less than £10,000 then it will be considered a ‘small claim’. As a result, you are only entitled to recover legal costs of a few hundred pounds, if you win your case. We would be happy to discuss our fixed fee options, in particular, with small and medium enterprise businesses.
Navigating Breach of Verbal Contracts Effectively:
Navigating the complexities of a breach in a verbal contract requires a clear understanding of your rights and available remedies. While verbal contracts lack the formality of written agreements, they are still legally enforceable in the UK.
Whether you’re a business owner, or an individual, being informed about the legal implications of the breach of contract and/ or the remedies, you should receive clear and concise legal advice.
If you are in London and are seeking a verbal contract lawyer, we can help your case. To book a Free Consultation Call, with Mr Usman Anwar Legal Director, you can complete the Contact Us Form or email us on email@example.com
Still not convinced? Read some of our business and consumer client’s success stories and testimonials on how they settled their verbal contract dispute using our legal service.