When it comes to business deals, one of the most common ways that agreements are made is through oral agreements. These are agreements made between parties verbally, without any written documentation. However, in the state of New York, these types of agreements can be tricky to enforce.
Oral agreements, also known as verbal agreements, can be made in many different scenarios. They can be made in person, over the phone, or even through email or text message. They are often made between friends, family members, or business associates who trust one another.
However, when it comes to business deals, oral agreements can be risky. Without documentation, it can be difficult to prove the details of the agreement, making it challenging to enforce in court.
In New York, the state has what is known as a “Statute of Frauds”. This statute requires certain types of contracts to be in writing, including contracts for the sale of real estate, leases of over a year, and agreements that cannot be completed within one year.
This means that if your oral agreement falls under the “Statute of Frauds”, it must be in writing for it to be legally binding in New York. If it is not in writing, it may not hold up in court.
Even if your oral agreement does not fall under the “Statute of Frauds”, it is still important to have it in writing to avoid any potential misunderstandings or disagreements down the line. Having a written contract also ensures that both parties understand the details of the agreement and can refer back to it if necessary.
In conclusion, while oral agreements can be a common way to make deals, they can be risky in the state of New York. It is important to understand the “Statute of Frauds” and have written contracts for any agreements that fall under it. Even for agreements that don’t fall under the “Statute of Frauds”, having a written contract can prevent misunderstandings and ensure that both parties are on the same page.