Offer the person making the offer in a verbal

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Offer: The person making the offer in a verbal contract must communicate their intent to enter into a contract. A verbal contract is not considered valid if all parties do not agree to the terms of the offer. Also, verbal contracts are only valid for a specified period of time and not indefinitely. Acceptance: A verbal contract is not valid until the offer is accepted. The acceptance of a verbal contract occurs when the person to whom the contract is offered voluntarily indicates agreement to its terms and conditions. Consideration: In addition to an offer and acceptance, verbal contracts must contain consideration. This means that each side must give the other something of value for the agreement to be binding. In most verbal contracts, this is an exchange of money, such as a down payment. However, in some cases, it is not money but a promise that is exchanged. Verbal Contract Law Verbal contracts are a convenient and commonly used form of agreement between two parties. However, the main problem with a verbal contract is that if any problems should arise and there were no witnesses to the agreement, the case is reduced to one party''s word against another''s. Even if verbal contract law is followed, a verbal contract is often easily contested. What Is a Statute of Frauds? A "statute of frauds" requires that certain contracts be in writing, and that they be signed by all parties to be bound by the contract. Although there can be significant variation between jurisdictions, the most common types of contracts to which a statute of fraud applies are: * Contracts involving the sale or transfer of land; * Contracts to answer for the debt or duty of another; * Contracts that, by its terms, cannot be completed within one year. (Please note that
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Mac Costas ATTN: Michael Wade 8999 e Vista Dr. GBS 205 - 13488 Scottsdale, AZ 85250 Legal, Ethical, and Regulatory Issues in Business 480.200.4107 [email protected] the fact that a contract is not completed within one year does not mean that it is voidable under a statute of frauds. For the statute to apply, the actual terms of the contract must make it impossible for performance to be completed within one year); and * Certain contracts for the sale of goods, under the Uniform Commercial Code. Typically, to satisfy the requirements of the statute, the writing must identify the contracting parties, recite the subject matter of the contract such that it can reasonably be identified, and present the essential terms and conditions of the parties' agreement. (Under the Uniform Commercial Code, to satisfy the statute, the writing for the sale of goods need only be signed by the party to be charged, and a quantity term.) Please note that, even without respect to the Statute of Frauds, it is good practice to reduce the essential terms of any contract to a signed, written agreement. Even when a Statute of Frauds does not apply to an oral contract,[1] it may be very difficult to prove and enforce the contract in the absence of a written agreement.
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  • Fall '10
  • williams

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