Statute of Frauds & the Implication in the Enforcement of Oral or Verbal Contracts

If you are contemplating an agreement with another individual, or company, it is important to obtain that agreement in writing and understand, in clear details, what is expected of the parties involved. In many cases, oral agreements, or oral contracts, are made between individuals and often hold the same weighted value as that of a written contract. The key to enforcing an oral contract lies in the ability to prove their existence and what the terms of that agreement may have been.

Because there are many types of contracts that can be highly debated, they are not permitted as oral contracts and must be, instead, outlined as a written agreement, or written contract. Under the Statute Against Frauds and Perjuries, also known as the Statute of Frauds, the types of contracts that require written agreement are outlined. If you have entered into an oral agreement, or oral contract with another individual, that contract can not be enforced until written contract is provided.

The types of contracts or agreements that must be made in writing involve those that include the incurrence of debt, marriage, agreements that can not be fulfilled within one year of the execution of the agreement, agreements that involve the assumption of debt on behalf of another individual, agreements outlining the sale of property and even agreements that involve the sale of property that is valued over $500.00.

In terms of insurance contracts and settlement offers, oral contracts are considered a type of oral agreement that can be enforced without a written agreement. In the realm of insurance settlement offers, many cases are in dispute over the amount of settlement often due to an adjuster's verbal offer of settlement that, ultimately, does not pan out to the figure offered by the adjuster initially. If you are in a situation where someone, especially an insurance company, has offered settlement monies to you, and that offer was made verbally, you may have a case for litigation should that offer not reach fruition.