Verbal agreements, also known as oral agreements, are a common practice in business. In these types of agreements, two parties agree to something verbally without any written documentation. While verbal agreements may have their benefits, they are often subject to various uncertainties, misunderstandings, and risks.
So, can you cancel a verbal agreement? The answer is not straightforward. There are several things to consider, and the outcome depends on various factors.
First things first, it`s important to understand that a verbal agreement is legally binding, just like a written agreement. However, the main difference between the two lies in the ease of proof. With a written agreement, you have a paper trail that can be presented in court if needed. But with a verbal agreement, proving the terms and conditions can be challenging, which is why it`s best to avoid them whenever possible.
That said, cancelling a verbal agreement can be done, but it may not be easy. One factor that determines whether a verbal agreement can be cancelled is the nature of the agreement itself. Some verbal agreements fall into the category of “simple contracts,” which means they don`t require any formalities and can be cancelled by either party at any time without any consequences. However, other types of verbal agreements, such as agreements for the sale of land or a lease, are more complex and may require specific formalities to cancel them.
Another factor to consider is whether there has been any “part performance.” This means that one or both parties have already taken some steps to fulfill the terms of the agreement. For example, if you agree to buy a car from someone and they deliver the car to your doorstep, part performance has occurred, and it may not be possible to cancel the agreement without facing some consequences.
Additionally, if there is any indication that the other party has relied on the agreement, it may also be challenging to cancel it. This is because the law recognizes the concept of “promissory estoppel,” which means that if one party makes a promise and the other party relies on that promise to their detriment, the court may intervene to prevent injustice.
In conclusion, cancelling a verbal agreement is possible, but it`s not always straightforward. If you find yourself in a situation where you want to cancel a verbal agreement, it`s best to seek legal advice and work with the other party to come to a mutually acceptable solution. And remember, it`s always better to have a written agreement in place to prevent any misunderstandings or uncertainties down the line.