To win the case, the aunt must prove with evidence that her nephew lent the money with the intention of repaying it, while the nephew must prove that he did not accept. Without the documentation of the agreement, it will be a matter of er-she-said. In the end, it is a judge who decides which case is most likely of the party. Be sure to review your state`s fraud laws or law if you are not sure if you need a written agreement or not. The parties, both reasonable, should freely approve the terms of the agreement, i.e. without influence, coercion, coercion or misreprescing of facts. The nephew and aunt accept the terms of the contract without putting pressure on each other and with the intention of fulfilling their obligations. Many oral contracts are legally binding, but the possibility that a party will not respect its commitment still exists; That`s why people often prefer to make their deals in writing. If two or more parties reach an agreement without written documents, they will enter into an oral agreement (formally known as an oral contract). However, the authority of these oral agreements can be a bit of a grey area for those who do not know the law of contracts. Most oral contracts are legally binding. There are a few exceptions, however, depending on the design of the agreement and the purpose of the contract.
In many cases, it is best to draft a written agreement to avoid litigation. If an oral contract does not interfere with one or more elements of a valid contract, it is likely that a court will declare the agreement inconclusive and unenforceable. Many states have written provisions for certain treaties that believe that oral agreements are insufficient. Contractual terms must not be presented in a vague, incomplete or erroneous manner. In other words, there should be an agreement on who the contracting parties are, on each party`s obligations, on the price to be paid and on the purpose of the contract. The conditions between aunt and nephew are very clear; the aunt lends $200 to the nephew for the purchase of a new tire (and nothing else) provided he reseals her 200 dollars at some point (for example. B when he receives his next cheque). Without the testimony of the agreement, the aunt could have 200 dollars and a decent relationship with her nephew. The concept of an oral contract is sometimes used as a synonym for an oral contract. Since the term verbal can also mean that words are used only in addition to the use of spoken words, the term oral contract should be preferred if the clarity is maximum.
 For a verbal agreement to be binding, the elements of a valid contract must be present. To illustrate how the elements of a contract create binding conditions in an oral agreement, we use the example of a man who borrows $200 from his aunt to replace a flat tire. Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. For example, employers, workers and self-employed contractors may consider it invaluable to document the terms of their agreements in an employment contract or service contract. While a verbal agreement may be legally enforceable, it can be difficult to prove in court. As a general rule, oral contracts are as valid as written contracts, but some jurisdictions require either a written contract in certain circumstances (for example). B if real estate is transferred), either a contract is proven in writing (although the contract itself may be oral). An example is the need to prove in writing a warranty contract, which is enshrined in the status of fraud. Related: “Off the Record” Against a Confidentiality Agreement As well as the prescribed prescription for an act