{"id":5379,"date":"2022-06-27T08:46:32","date_gmt":"2022-06-27T06:46:32","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/law\/?p=5379"},"modified":"2022-06-27T09:09:08","modified_gmt":"2022-06-27T07:09:08","slug":"verbal-agreements-not-much-good-but-lots-of-bad-and-ugly","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/law\/2022\/verbal-agreements-not-much-good-but-lots-of-bad-and-ugly\/","title":{"rendered":"Verbal Agreements \u2013 Not Much Good, But Lots of Bad and Ugly"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cThe Good, The Bad, and The Ugly\u201d (Spaghetti Western, 1966)<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">A common myth \u2013 one that can get you into a whole lot of trouble if you aren\u2019t alive to it &#8211; is that verbal contracts are not legally enforceable in South Africa.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The opposite is true. With very few exceptions, our law will hold you to all your agreements, whether oral or written.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">What verbal agreements aren\u2019t binding?<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">Not many. Only a few types of agreement must be in writing to be fully valid, the most common being contracts for the sale, exchange, or donation of land or of any \u201cinterest in land\u201d, ante-nuptial contracts (ANCs); and deeds of suretyship.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">So, watch what you say!<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">Firstly, although our laws of contract are complex, with many exceptions and \u201cifs and buts\u201d, at the most basic level the only requirements for a binding contract are an \u201coffer\u201d and an \u201cacceptance\u201d of that offer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, watch what you say! Make an offer to someone else, or accept another person\u2019s offer, and that little voice at the back of your mind telling you \u201cDon\u2019t worry, you aren\u2019t actually tying yourself into anything here\u201d is very likely to be (a) totally wrong and (b) getting you into a whole lot of trouble.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">The danger \u2013 a little bit of Good, but mostly Bad and Ugly<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">Of course, verbal agreements do have their benefits \u2013 they\u2019re quick, easy, and cost-free. We enter into little give-and-take deals with others in our daily lives without a second thought and with not a drop of ink in sight. And that\u2019s absolutely fine for the little things.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But contracting orally is a terrible idea when the stakes are high &#8211;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Our not-so-sharp memories:&nbsp;<\/strong>As the old proverb warns us: \u201c<em>The bluntest pencil is better than the sharpest memory<\/em>\u201d. It\u2019s a human trait for us to \u201chear what we want to hear\u201d. And to remember what we want to remember. You and the other person could well, in all innocence, come away from exactly the same discussion with totally different ideas and memories of what you actually agreed to.Next thing you know you\u2019re both in court, swearing to the truth of your own versions and leaving it to a judicial officer to try and decide whose recollection is the more accurate. That decision could go either way.Record what you agree to, for all to see.<\/li><li><strong>The fraud risk:<\/strong>&nbsp;Worse, if your opponent isn\u2019t above stretching the truth a little (or a lot!) you have the same problem but magnified. Make it difficult for a dishonest party to wriggle out of an agreement \u2013 or to misrepresent its terms &#8211; by recording it in black and white.<\/li><li><strong>Proof:<\/strong>&nbsp;Which brings us to the question of proof. With an oral agreement it is your word against theirs. At best, you may be lucky enough to have a witness available to support your version, but such a witness may or may not have a good memory and high credibility. That can never match up to the evidential weight of a \u201csigned, sealed and delivered\u201d contract.<\/li><li><strong>Certainty and Dispute:<\/strong>&nbsp;Let\u2019s bring that all together under the heading of \u201ccertainty\u201d. Although written contracts aren\u2019t perfect &#8211; our courts are regularly faced with disputes over them &#8211; there\u2019s a lot less room for misinterpretation, uncertainty, and dispute when you can stand up in court waving a signed piece of paper rather than saying \u201cAs I recall it\u2026\u201d<\/li><\/ol>\n\n\n\n<h6 class=\"wp-block-heading\">An end note on electronic contracts<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">This is a whole other topic on its own, but bear in mind that since the arrival on the scene of the ECT (Electronic Communications and Transactions) Act you can often contract electronically via email, WhatsApp, and the like. There\u2019s both a warning there (\u201cbe careful what you agree to electronically!\u201d) and an opportunity (\u201cpaper, pen and ink not always needed!\u201d). Take professional advice in any doubt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Disclaimer:<\/strong>&nbsp;The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.<\/p>\n\n\n\n<p class=\"has-text-align-right wp-block-paragraph\">\u00a9 LawDotNews<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cThe Good, The Bad, and The Ugly\u201d (Spaghetti Western, 1966) A common myth \u2013 one that can get you into a whole lot of trouble if you aren\u2019t alive to it &#8211; is that verbal contracts are not legally enforceable in South Africa. The opposite is true. With very few exceptions, our law will hold [&hellip;]<\/p>\n","protected":false},"author":101014,"featured_media":5393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[29],"tags":[],"class_list":["post-5379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contract"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Verbal Agreements \u2013 Not Much Good, But Lots of Bad and Ugly &#8226; LawDotNews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dotnewsconnect.co.za\/law\/2022\/verbal-agreements-not-much-good-but-lots-of-bad-and-ugly\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Verbal Agreements \u2013 Not Much Good, But Lots of Bad and Ugly &#8226; LawDotNews\" \/>\n<meta property=\"og:description\" content=\"\u201cThe Good, The Bad, and The Ugly\u201d (Spaghetti Western, 1966) A common myth \u2013 one that can get you into a whole lot of trouble if you aren\u2019t alive to it &#8211; is that verbal contracts are not legally enforceable in South Africa. The opposite is true. 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