Can a Verbal Agreement Hold Up in Court in the U.S.?
“We Shook Hands on It—Is That Enough?”
You and a friend agree to split costs for a small business idea.
Or maybe someone promises to repay a personal loan.
No documents. No emails. Just a handshake or a phone call.
A few weeks later, they change their mind.
Refuse to pay you back.
Or deny the agreement entirely.
And now you’re wondering:
Is a verbal agreement legally binding?
Short Answer: Yes—But It’s Complicated
In most U.S. states, verbal agreements can be legally enforceable.
But you’ll need to prove:
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There was a clear offer and acceptance
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Both parties intended to be bound
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There was something of value exchanged (called consideration)
And here’s the catch—proving a verbal agreement often becomes a matter of “your word vs theirs.”
When Verbal Agreements Are Usually Enforceable
✅ Lending or borrowing small sums of money
✅ Agreements under $500 (varies by state)
✅ Short-term services (e.g., paying someone to paint a fence)
✅ Informal employment or freelance work
If both sides followed through on part of the deal (like partial payment), courts may see that as proof a deal existed.
When Verbal Agreements Likely Won’t Be Enforced
🚫 Real estate transactions (must be in writing under the Statute of Frauds)
🚫 Agreements for more than a year
🚫 Promises involving marriage, inheritance, or large amounts of money
🚫 Anything requiring written documentation by state law
Even if both parties meant well, some contracts are legally required to be written.
Real Scenarios That Turned into Legal Disputes
▪️ A man verbally agreed to do renovations for a friend’s store. After finishing, he wasn’t paid—and had no contract. The court dismissed his claim due to lack of evidence.
▪️ A roommate promised verbally to pay half the utility bills. After months of refusal, the other roommate showed Venmo messages and texts as supporting proof—and won in small claims court.
▪️ A freelance photographer was hired through a phone call. No emails, no written agreement. When unpaid, she used call logs and social DMs to prove the job happened—and recovered payment.
Tips to Protect Yourself (Even for Small Deals)
– Follow up with a written message (email or text) confirming the terms
– Save all payment records or messages
– Don’t rely solely on memory—document names, dates, details
– If it involves risk or more than a few hundred dollars, get it in writing
Final Thoughts
In the U.S., a handshake can be a contract.
But if it goes south, what matters is not what was said—but what you can prove.
So the next time someone says, “We don’t need to write it down,” ask yourself:
Will a judge believe your version without anything on paper?
Put it in writing. Protect the relationship—and yourself.
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