Скачать или смотреть WESOS Ask Jade February 2025 Why Verbal Agreements Can Cost Your Business

In Illinois, oral contracts are legally recognized and enforceable
Yet, oral contracts can pose significant challenges, particularly in business disputes
-written business contracts provide tangible evidence of agreed-upon terms,
-oral contracts rely solely on verbal communication, making them inherently more difficult to
prove and enforce
In order for an oral contract to be enforceable, it must satisfy elements required for a binding
contract:
-offer, acceptance, consideration, mutual intent
For instance, if two parties verbally agree that one will provide construction services in exchange
for payment, and both act in reliance on this agreement, a binding oral contract likely exists
under Illinois law.
Statute of Frauds – safeguard for certain transactions
-certain types of agreements MUST be in writing to be enforceable
-sale of goods over $500, agreements that can’t be performed within 1 year, real estate
Oral contracts are also more susceptible to ambiguities and misunderstandings
Courts look at the actions of the parties to determine the terms and enforce the agreement:
-performance, reliance on the agreement, consistency of the parties’ actions with the
alleged terms
Oral contracts offer flexibility and simplicity, allowing parties to reach agreements quickly
without formal documentation. This can be advantageous in time-sensitive situations or for low-
stakes transactions. However, the lack of tangible evidence increases the risk of disputes and
makes enforcement more challenging.
While oral contracts can be binding, written agreements are almost always preferable.