Verbal Agreement Law in South Africa: Understanding Your Rights
Contracts are agreements between parties that are legally enforceable. In South Africa, verbal agreements are also considered legally binding and enforceable. However, it is essential to understand that verbal agreements can be challenging to prove in court. This article will guide you through verbal agreement law in South Africa, and what to do if a dispute arises.
What is a Verbal Agreement?
A verbal agreement is a contract that is made orally rather than in writing. These agreements can range from a simple handshake to a more complex discussion that outlines specific terms and conditions. Despite not being in writing, verbal agreements are still legally enforceable under South African law.
What Makes A Verbal Agreement Legally Binding?
For a verbal agreement to be legally binding, the following criteria must be met:
1. Agreement – The parties must agree on the terms and conditions of the contract.
2. Intention to create legal relations – both parties must have the intention and understanding that the agreement is legally binding.
3. Certainty – the terms of the agreement must be clear and certain, not vague or ambiguous.
4. Consideration – there must be some form of value exchanged between both parties, such as goods or services.
Proving a Verbal Agreement
If a dispute arises concerning a verbal agreement, it can be difficult to prove what was agreed upon. It is crucial to keep a record of all conversations, including the date, time, place, and any relevant details discussed. Witnesses can also be valuable in attesting to the agreement. In some cases, an email or message exchange can be used as evidence.
What To Do If There Is a Dispute?
If a dispute arises concerning a verbal agreement, the first step is to try and resolve the matter amicably. Communication is essential, and both parties should try to reach an agreement. If this is not possible, the next step is to seek legal advice.
Enforcing a Verbal Agreement
If a verbal agreement is breached, then the aggrieved party can seek legal action. The first step is to issue a letter of demand to the other party, outlining the breaching of the agreement and the desired outcome. If this does not resolve the matter, the next step is to apply to the court for an order, which will enforce the agreement. If the court finds that a verbal agreement exists, it can make a ruling based on the evidence presented.
Conclusion
Verbal agreements are legally binding in South Africa. However, it is essential to remember that disputes can arise, and it can be challenging to prove an oral agreement. It is vital to keep a record of all conversations and to seek legal advice if a dispute arises. Understanding your rights concerning verbal agreements is crucial in protecting yourself and your interests.