Verbal vs Written Agreement: Which One Should You Choose?
When it comes to making agreements, there are two popular options: verbal agreements and written agreements. While both have their pros and cons, the choice ultimately depends on the nature and significance of the agreement.
What is a Verbal Agreement?
A verbal agreement is a type of agreement made through spoken words rather than through written documentation. It is usually made in a conversation between two or more parties. Verbal agreements can be binding, but they are often difficult to enforce due to the absence of written proof.
What is a Written Agreement?
A written agreement is a type of agreement that is documented in writing and is signed by all parties involved. It is a legally binding document that clearly outlines the terms and conditions of the agreement. Written agreements are enforceable and provide evidence of the agreement in case of disputes.
Pros and Cons of Verbal Agreements
Pros:
1. They are quick and easy to make.
2. They are less formal and can be made in an informal setting.
3. They are suitable for less significant agreements or for agreements between family or friends.
4. They do not require any legal fees or paperwork.
Cons:
1. They are not legally binding, and it can be difficult to enforce them.
2. They are open to misinterpretation or memory lapses.
3. There is no evidence of the agreement in case of disputes.
4. They are not suitable for significant agreements.
Pros and Cons of Written Agreements
Pros:
1. They are legally binding and enforceable.
2. They provide evidence of the agreement in case of disputes.
3. They clearly outline the terms and conditions of the agreement.
4. They are suitable for significant agreements, such as employment contracts or business agreements.
Cons:
1. They require legal fees and paperwork.
2. They are more formal and less flexible than verbal agreements.
3. They can take longer to make than verbal agreements.
4. They may require legal expertise to ensure that all necessary clauses are included.
Conclusion
In conclusion, the choice between a verbal agreement and a written agreement depends on the nature of the agreement. Verbal agreements are suitable for less significant agreements, while written agreements are suitable for significant agreements. However, it is important to note that written agreements provide more security and protection, while verbal agreements are less enforceable and open to misinterpretation. Ultimately, the choice between a verbal agreement and a written agreement should be carefully considered based on the needs of the parties involved.