In the business world, contracts are a must. They are a way to keep two or more parties accountable to each other and allow for legal recourse if one party fails to uphold his or her end of the agreement. Written contracts are preferred as they provide tangible evidence that an agreement exists, but there are some business owners in Texas and elsewhere who still believe in the use of verbal contracts.

Business contracts have to satisfy certain requirements if they are to be legal and enforceable. First, a contract has to have both a clear offer and an acceptance of that offer. Second, something of value must be given by all parties. Third, the agreement cannot be for any illegal purpose. Finally, fourth, all parties must possess the legal capacity to enter the agreement.

Verbal contracts, those that are made and agreed to through spoken communication, are legal and enforceable in the state of Texas, just like in many other states. The problem is it can be difficult to prove that they exist. It is incredibly easy for one party to deny entering into such an agreement, which makes it challenging for the other party to seek relief for any losses experienced because of a breach of contract.

There may be ways to prove the existence of verbal contracts, but it can prove extremely difficult. At the end of the day, business owners in Texas and elsewhere would be better off sticking to written agreements whenever possible. Those who have entered oral contracts and are currently dealing with breach of contract issues can turn to an experienced attorney to determine if they have any legal recourse.