Business deals are often made by phone call, handshake, or text message. Those agreements can be legally binding, but proving them is much harder than proving a signed contract.
Oral and informal agreements can count
Texas law can enforce an oral agreement if the basic elements of a contract are present, such as an offer, acceptance, and consideration, and the terms are definite enough. Emails and texts may be evidence of the agreement and its terms.
The statute of frauds
Certain kinds of contracts must be in writing to be enforceable, including many agreements for the sale of real estate and agreements that cannot be performed within one year. Exceptions and workarounds exist, but they depend on the facts, so do not assume an oral deal in these categories is safe.
Practical proof problems
Each side may remember the terms differently.
Key details, such as price, deadlines, and scope, may never have been discussed.
Messages sent in pieces over time can be unclear about what was finally agreed.
How to protect yourself
Follow every important conversation with an email summarizing what was agreed. Save texts, invoices, and payment records. For anything significant, sign a short written agreement.
A written agreement is not just for the bad times. It is how both sides remember the same deal, which is often what prevents a dispute altogether.
Davila Cobos Law Firm, PLLC represents clients in San Antonio and Laredo. Learn more about our business litigation lawyer services, or contact the firm to discuss your situation.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Every situation is different, so talk to a Texas attorney about yours.
