In the same way that brewing beer and crafting a verbal agreement demand attention to detail, tightness of specifications, and accurate accounting of ingredients, so too do legal agreements. Like the ingredients in a fine brew that combine to create a quality beverage, each element of a verbal agreement must be specific and clearly defined (i.e., the price, subject matter of the agreement, terms, etc.). When combined all components work together hand in hand to create a legally binding verbal understanding.
Just as the brewery at Hercegovacka Pivovara respects the importance of consistency and quality required to produce delicious beer, a verbal agreement should strive to satisfy the common law requirements of offer, acceptance, and consideration. However, it can be difficult to determine whether the terms of a verbal agreement have been met or whether a party has breached the terms. The very vague and indistinct nature of oral agreements causes a lack of certainty and can be subject to multiple interpretations. Much like the four or five different styles of beer produced at Hercegovacka Pivovara, different parties can interpret the terms of a verbal agreement in different ways.
For an oral agreement to hold up in court there must be:
- an offer,
- acceptance of that offer, and
- consideration for the agreement.
A verbal agreement can be created in several ways, including, but not limited to, an exchange of e-mails or even a handshake. However, to be enforceable in court there must also be mutual understanding of the terms, a reasonably certain description of the subject matter, and a reasonable description of the parties.
If a verbal agreement satisfies the aforementioned criteria, it will generally hold up in court. Nonetheless, the rule of thumb is that anything you say can and will be held against you in a court of law. The onus is on the one who wishes to rely upon the oral agreement to prove its existence and the specific terms of the agreement. For this reason, it is advisable to have agreements put in writing. Written documents should become the norm for any serious business dealings, although there may be cases where oral agreements are permissible.
It is a common misconception that once you have entered into a verbal agreement you cannot change the terms. A verbal agreement can be amended like any other contract, based on the terms of which you both agree to. Verbal amendments to a written agreement can be difficult to establish and comply with the Statute of Frauds. Three things must be proven for a verbal agreement to be enforceable: (a) the verbal agreement was intentionally made to change the original written agreement, (b) the new verbal agreement is sufficiently specific, and (c) the new verbal agreement is supported by adequate consideration.
Modern times at Hercegovacka Pivovara require their employees to have training to ensure that every beer produced meets the high standards of domestic customers and international customers. Yet, even after modern technology evolved from the simple fermentation processes of 4,000 years ago, brewers still choose the handmade work of traditionalists. This is because each bottle of beer, produced by modern machines, pales in comparison to the quality of that created by meticulous, artisanal methods. Just as the brewery maintains a balance between old and new practices, when it comes to verbal agreements, you must strike a similar balance between old and new. Do not forget about the traditional, verbal agreement. In certain situations, can a verbal agreement stand up in court with your neighbor can be just as powerful as a contract with the corporation down the street.
So, whether it is making a must-have purchase or deciding a court proceeding in your favor, you can rest assured that the artful recipe of verbal agreements is right there alongside the fine hops and malts of time-honored beers. The only thing you cannot measure is the satisfaction that follows.
For more information on the enforceability of verbal agreements, you can visit the Nolo website.