Can You Sue For Breach Of An Oral Contract In Ohio?

A contract doesn’t always start with a long, written agreement and signatures. The parties involved can engage in verbal exchanges to make a deal or discuss the terms of the business. If one party fails to fulfill its part of the agreement, the lack of a written contract can create problems.

The good news is that your oral contract may be legally binding in Ohio. It will depend on the kind of agreement that you have and the evidence you can use to prove the deal.

Are oral contracts enforceable in Ohio? 

Generally, a contract does not need to be in writing to be valid. The main elements of a contract include an offer, acceptance, intent to create legal relations, and consideration.

The problem with oral contracts is that the terms of the agreement can easily be disputed because there is no written evidence to prove the exact terms. These issues can include price, delivery, time, responsibilities, and more.

Examples of evidence may include emails, text messages, bills, receipts, bank records, and witness testimony.

When does an Ohio contract need to be in writing? 

There are exceptions to the general rule mentioned above. Section 1335.05 of the Ohio Revised Code lists the agreements that must be put in writing under the Statute of Frauds and signed by the other party. These include certain agreements concerning an interest in land, promises to pay another person’s debts, and agreements that cannot be performed within a year.

The one-year rule can be crucial in commercial litigation. The Ohio Supreme Court ruled that, in general, the statute applies to agreements that are unable to be fulfilled during one year from the time they were entered into. An indefinite period of performance does not exclude an agreement from falling under the rule if performance might have been completed within a year.

Other requirements for writing may apply depending on the kind of transaction.

How do you prove an oral contract? 

A person suing for breach of contract must prove not only that the contract existed but also the exact terms of the contract.

For instance, imagine a business entity orally contracted with another company for services at an agreed cost. Email correspondence about the job, invoices for the agreed amount, proof of work commencing, and proof of past payment could help establish the parties’ agreement.

Thus, the parties’ conduct can sometimes provide substantial evidence of the agreement reached.

Don’t assume a verbal contract is unenforceable 

Not having a written agreement does not automatically mean you have no legal recourse. However, under Ohio’s Statute of Frauds, as well as other contract laws, many oral agreements are difficult to enforce.

If someone violates an oral agreement, an Ohio contract lawyer can help determine whether the agreement was a contract in the first place.

Talk to a Columbus, OH, General Business Counsel Attorney Today 

Kohl & Cook Law Firm, LLC, represents the interests of Columbus businesses involved in disputes with individuals and companies. Call our Columbus general business counsel lawyers today to schedule an appointment, and we can begin representing your interests right away.