When you think of having a business contract, you probably envision a written agreement signed by both parties. However, in Florida, some contracts can be entered into verbally. So, if you are doing business in the Sunshine State, you need to know: When is an oral contract enforceable in Florida?
Forming Florida Contracts
Parties need three main elements to form a valid contract: offer, acceptance, and consideration. Contract formation involves one party making an offer and the other party accepting the conditions. The consideration is something of value that is exchanged between the parties. Consideration is paid for the performance of the contract terms. A valid agreement will have terms that specify the consideration when the good or service will be provided and important details about what is being sold. For instance, one party may offer to pay $5,000 to deliver and set up computers and office equipment for the other party. Under their agreement, Party A will agree to pay Party B the money, and in exchange, Party B will agree to provide the goods and services. Their agreement will describe what is being sold (office equipment with delivery and installation) when the transaction will take place, and other important details.
Florida Oral Contracts
In Florida, not all contracts have to be in writing, and there are those that can be effectuated verbally. However, there are some limitations on the enforceability of a verbal contract. The statute of frauds requires certain agreements to be signed and in writing to be valid and enforceable. For instance, under the statute of frauds, contracts for the sale of real property, including the sale of land, easements, or mortgages and that cannot be completed within a year must be in writing and signed by the party against whom enforcement is sought. Further, contracts that can’t be performed within one year must also be written and signed. If your contract involves paying the debts of another or a sale of goods for more than $500, that agreement must also be written and signed to be enforceable.
Suing For Breach of a Verbal Contract
Depending on the facts, you may be able to sue another party for breaching a valid verbal agreement. However, proving what was said and agreed upon can be challenging. The injured party may have to use evidence such as emails, voice messages, texts, and witness testimony to establish their claims. They may also be able to prove partial performance of the contract. The aggrieved party will have to be able to show that they were harmed by the breach as well. For instance, if someone promised to purchase your business asset and you sold the item a few days later for a comparable sum, there would probably not be damages. Additionally, as with any contract dispute, it’s essential to be mindful of the applicable statute of limitations.
Contractual Agreement Remedies
If you have entered into a verbal agreement, you may or may not have an enforceable contract and available remedies. However, depending on the circumstances, other remedies may be available. Understanding all contracts to which your business may be bound is essential. The best way to assess your contractual agreement and options is by talking with an experienced business law attorney. Your business lawyer can help you evaluate your agreement and determine your next steps.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.