Verbal Agreement Ontario: Everything You Need to Know
In Ontario, a verbal agreement, also known as an oral contract, is legally binding. However, it is important to note that a verbal agreement may be difficult to enforce in court as there may be lack of evidence to support the agreement.
What is a Verbal Agreement?
A verbal agreement is a contract created through spoken words between two or more parties. It does not have to be written down or signed to be legally binding. The terms and conditions of a verbal agreement are agreed upon by all parties involved.
Verbal agreements can be used in many different situations such as employment contracts, lease agreements, and service contracts. However, it is always advisable to have a written contract in place to avoid any confusion or misunderstandings.
Enforcement of Verbal Agreements
If a verbal agreement is breached, it can be difficult to enforce in court. The reason for this is that there may not be enough evidence to support the agreement. Evidence such as emails, text messages, or witnesses can help to support the existence of a verbal agreement.
It is always best to have a written agreement in place as it provides clarity and reduces the risk of misinterpretation. A written agreement can also be enforced in court if necessary.
Verbal Agreement and the Limitations Act
In Ontario, the Limitations Act sets out the time limits for starting a lawsuit. The limitation period for breach of a verbal agreement is two years from the date the cause of action arose.
However, it is important to note that the limitation period can be extended or shortened depending on the circumstances of the case. It is always advisable to consult with a lawyer to determine the limitation period for your case.
Conclusion
In conclusion, a verbal agreement in Ontario is legally binding, but it can be difficult to enforce in court. It is always advisable to have a written agreement in place to avoid any misunderstandings or confusion. If you do enter into a verbal agreement, it is important to keep any evidence that can support the existence of the agreement. If you have any doubts or questions, it is always best to seek legal advice.