In the province of Ontario, verbal contracts are legally binding, but proving their existence and terms can be challenging. In this article, we will explore the concept of verbal contracts in Ontario, their validity, and the steps you can take to protect yourself in case of a dispute.
What is a Verbal Contract?
A verbal contract, as the name suggests, is an agreement between two or more parties that is made through spoken words rather than a written document. Verbal contracts are legally binding in Ontario, but they can be difficult to prove, as there is no physical evidence of the agreement.
Validity of Verbal Contracts in Ontario
In Ontario, verbal contracts are considered lawful as long as they meet the following criteria:
1. Agreement: Both parties must agree to the same terms and conditions. There must be mutual consent between the parties for a verbal contract to be legally binding.
2. Consideration: Both parties must provide something of value in exchange for the agreement. This could be money, property, or services.
3. Capacity: Both parties must have the legal capacity to enter into a contract. This means that they must be of legal age (18 or older) and have the mental capacity to understand the terms and conditions of the agreement.
Proving the Existence of a Verbal Contract
Proving the existence of a verbal contract can be challenging, as there is no physical evidence to support the agreement. However, there are steps you can take to protect yourself in case of a dispute:
1. Document the details: As soon as possible after the verbal agreement is made, write down the terms and conditions of the contract, including the date, time, and location of the agreement.
2. Get witness statements: If there were witnesses to the agreement, ask them to provide a written statement detailing what they heard.
3. Keep any relevant documents: If there are any documents related to the agreement, such as emails or text messages, keep them as evidence.
4. Seek legal advice: If you are unsure about the validity of a verbal contract or require assistance in resolving a dispute, seek legal advice from a qualified lawyer.
Conclusion
In conclusion, verbal contracts are legally binding in Ontario, but they can be difficult to prove in case of a dispute. As a best practice, it is recommended to document the details of the agreement, get witness statements, and seek legal advice if necessary. By taking these steps, you can help protect yourself and your interests in case of a disagreement over a verbal contract.