Is a Verbal Contract Legally Binding in Florida?

When most people think of contracts, they picture documents with signatures, clauses, and pages of legalese. But what happens when an agreement is made with just a handshake or over the phone? In Florida, verbal contracts, also called oral agreements, can, in many cases, be just as legally binding as written ones. However, proving their validity can get tricky.

At RTRLAW, our experienced contract dispute attorneys help individuals and businesses across Florida enforce or defend against verbal agreements. We can help you understand what factors determine whether a spoken contract is legally enforceable or not.

How are Verbal Contracts Enforceable Under Florida Law?

While many people believe that a contract must be written to be legally binding, Florida law says otherwise. Verbal agreements can hold the same legal weight as written ones, but they must meet certain legal standards just as written contracts.

To be enforceable, a verbal contract must contain these four essential elements:

  • Offer and Acceptance: One party must make a clear offer, and the other must accept it.
  • Consideration: There must be an exchange of something of value (e.g., money, services, goods, a promise to do or not to do something).
  • Mutual Intent (referred as a “Meeting of the Minds”): Both parties must intend to create a legally binding agreement and then agree on the terms negotiated.
  • Legal Purpose: The contract must be for a lawful purpose and the parties must have the capacity or legal ability to enter into the contract.

If your verbal agreement meets these requirements, Florida courts may consider it valid and enforceable. However, there are important exceptions to be aware of.

When is a Verbal Contract NOT Enforceable?

Not all verbal contracts are created equal. Even in a state like Florida that permits them, there are specific types of agreements that must be in writing to be valid under the Statute of Frauds, which is a legal doctrine designed to prevent fraud and misunderstandings.

Contracts that require written documentation include:

  • Real estate transactions, including sales of land and leases for real property lasting more than a year
  • Contracts requiring over one year to perform
  • Promises to pay another person’s debt
  • Prenuptial or postnuptial agreements
  • Sale of goods over $500 (as governed by the Uniform Commercial Code)

If your contract falls into one of these categories and isn’t documented in writing, it likely won’t be upheld in court. It’s crucial to understand these exceptions before entering into an informal verbal agreement. You should be aware of the challenges you might face trying to enforce one.

What are Some Challenges of Enforcing a Verbal Contract?

While verbal contracts can be legally binding, enforcing them in court is often an uphill battle. Lack of written evidence is the biggest hurdle. When nothing is documented, it’s your word against the other party’s.

To enforce a verbal contract, you’ll need to demonstrate:

  • That a legitimate agreement existed
  • The specific terms that were agreed upon
  • That you upheld your part of the bargain
  • That the other party did not
  • That you suffered financial harm as a result

Supporting evidence may include, but is not limited to, emails, text messages, payment records, witness testimony, or any communication that references the agreement. Having strong documentation can make the difference between a successful claim and a frustrating dismissal.

Given these enforcement challenges, it’s important to understand the situations in which verbal contracts are the most common in order to be especially cautious.

What are Some of the Most Common Scenarios Where Verbal Contracts Arise?

Verbal agreements are especially common in situations that feel casual or are built on trust. People often skip the formalities when working with:

  • Friends or acquaintances: like a freelance job or odd job agreement
  • Local vendors or contractors: handshake deals for home repairs or services
  • Family members: lending money, property agreements, or caregiving arrangements
  • Small business partnerships: such as informal revenue splits or startup collaborations

While these arrangements may seem straightforward, they often lack the clarity and protection of a written contract. Disputes can arise when one party forgets the terms or interprets them differently so it’s important to protect yourself when entering into a verbal agreement with someone.

How Can You Protect Yourself When Entering into a Verbal Agreement?

If you find yourself entering into a verbal agreement, intentionally or not, there are steps you can take to safeguard your interests and reduce the risk of misunderstandings or legal issues:

  • Follow up in writing: Send a confirmation email or text summarizing the key points of your agreement.
  • Document everything: Save receipts, messages, invoices, or payment confirmations.
  • Have witnesses present: A third-party witness can help verify that an agreement was made.
  • Keep a paper trail: Make notes of conversations and follow-ups to track any changes to the agreement.
  • Ask for written confirmation: Even if it starts as a verbal deal, consider drafting a simple written contract afterward.

Whenever possible, aim to formalize your agreement in writing. It provides the clearest, strongest protection, and it ensures all parties are on the same page from the start.

How RTRLAW Can Help with Verbal Contract Disputes

If you’re dealing with a contract dispute, verbal or written, RTRLAW’s commercial litigation attorneys are here to help. With decades of experience representing clients across Florida, we understand the complexities of Florida contract law and what it takes to win in court.

We can:

  • Evaluate whether your verbal contract is legally enforceable
  • Help you gather supporting evidence
  • Negotiate on your behalf to resolve disputes
  • Represent you in litigation if necessary

Don’t let a handshake deal leave you empty-handed. If you believe a verbal contract has been breached, or if you’re being unfairly accused of breaching a verbal contract, RTRLAW is ready to fight for your rights. Contact us today for a free, no-obligation consultation at 1-833-HIRE-RTR and let us help you get the outcome you deserve.