Verbal Agreement Contract Philippines
- by tosca
- in Uncategorized
- posted July 26, 2023
Are Verbal Agreements Valid Contracts in the Philippines?
When it comes to entering into agreements or contracts, we often think that everything should be in writing. However, there are instances where verbal agreements may be made, particularly in casual or personal transactions. But are these verbal agreements legally binding in the Philippines?
The short answer is yes. Under the Philippine Civil Code, contracts may be entered into orally or in writing, and such verbal agreements are just as valid as written contracts. This means that parties who enter into verbal agreements are bound by the terms and conditions they have agreed upon.
However, there are certain types of contracts that require written form in order to be valid. These include contracts for the sale of real property, lease of real property for a period of more than one year, and contracts of partnership exceeding PHP 3,000 in value.
Verbal agreements can be tricky, especially when disputes arise and parties have different recollections of what was agreed upon. In such cases, it may be difficult to prove the terms of the contract and enforce it in court. It is therefore recommended to have a written contract, even for personal transactions, to avoid misunderstandings and potential legal issues.
So what should be included in a verbal agreement or a written contract? Generally, it should contain the following:
1. Identification of the parties involved
2. Description of the subject matter of the agreement
3. Terms and conditions, including the rights and obligations of each party
4. Consideration, or the value exchanged between the parties
5. Signatures of the parties involved
It is also important that both parties fully understand and agree to the terms and conditions of the agreement before entering into it. Any ambiguities or uncertainties should be clarified before agreeing to the contract.
In conclusion, verbal agreements are legally binding in the Philippines, although certain types of contracts require written form. Nonetheless, it is always recommended to have a written agreement to ensure that all parties are on the same page and to avoid potential disputes and legal issues in the future.