Are verbal agreements legally binding?

A contract doesn't need paper or signatures. A spoken agreement is generally enforceable if it has:

• Offer and acceptance. One side proposes terms and the other accepts, by saying yes or by acting on the deal, such as starting the work.
• Consideration. Each side gives something of value, usually money for goods or services. Scots law doesn't require consideration, so a promise can bind in Scotland without it.
• Intention to create legal relations. In business dealings this is presumed. Social and family arrangements are presumed not to be binding unless the facts show otherwise.
• Certainty. The key terms, such as what's being supplied and the price, are clear enough to enforce.

A handshake deal to do a job for a price is a contract just like a signed one.

Some agreements, or parts of them, only work if they're in writing:

• Land. In England and Wales, the Law of Property (Miscellaneous Provisions) Act 1989 says a contract to sell or otherwise dispose of an interest in land must be in writing, contain all the agreed terms and be signed by or for each party. Some short leases are excepted.
• Guarantees. Under the Statute of Frauds 1677, a promise to pay someone else's debt can't be enforced unless it, or a note of it, is in writing and signed by the guarantor or someone they authorise.
• Copyright transfers. Under section 90 of the Copyright, Designs and Patents Act 1988, an assignment of copyright isn't effective unless it's in writing and signed by or for the person assigning it. A verbal promise that you'll own a designer's work doesn't transfer the copyright.
• Employment. An employment contract can be agreed verbally, but under section 1 of the Employment Rights Act 1996 the employer must give a written statement of the main terms by the first day of work.

In Scotland, the Requirements of Writing (Scotland) Act 1995 sets the rules, mainly requiring writing for land and for one-sided gratuitous promises made outside business.

If you sell to consumers, what you say counts. Under section 50 of the Consumer Rights Act 2015, anything you or your staff say to a consumer about you or a service becomes a term of the contract if the consumer takes it into account when deciding to buy. A promise made on the phone can bind you just like your written terms.

For sales by phone, online or away from your premises, the Consumer Contracts Regulations 2013 require you to give the consumer key information, including their 14-day right to cancel, and to confirm the contract on paper or another durable medium such as email. If you don't tell them about the right to cancel, the cancellation period can extend by up to 12 months.

Most disputes over verbal agreements aren't about whether a contract existed, but about what was agreed. Memories differ on price, scope, deadlines and extras.

A court decides on the evidence: emails, texts, quotes, invoices, payments, what each side did and what witnesses heard. If neither side can show the terms, the court may not enforce the deal at all.

To lock in a verbal deal, send a short confirmation the same day covering who the parties are, what you'll supply and by when, the price and payment terms, and anything else discussed. Ask the other side to reply confirming. For larger or ongoing work, use a written contract.