When running a business, even a small one, there will likely be many opportunities to create business relationships. These relationships could help Georgia entrepreneurs perform their operations more smoothly and work toward growth. However, it is important that these relationships have some legal boundaries, which can often be included in various business contracts. Though some owners may consider using verbal contracts, it is important to remember that these agreements are not always as sound as one may hope.
Though verbal agreements can be legally binding, without hard evidence that the agreement exists, it can be difficult to enforce the contract’s terms. Some entrepreneurs may think that they do not need a formal legal document to create a contract, especially if they trust the other party, but problems can arise even with trusted individuals and companies. If this happens, a company could end up in a bind because it cannot prove that the terms of the contract existed.
It is also important to remember that each state has different laws when it comes to verbal contracts, their validity and their enforceability. For example, a verbal agreement is not considered valid if the agreed upon action is illegal. Additionally, certain situations typically are not covered under verbal contracts, like real estate transactions, and must have written documentation.
Though it is generally wise to opt for written agreements rather than verbal contracts, times may arise that Georgia entrepreneurs use oral agreements and run into issues. If this happens, the situation can be complicated but not necessarily impossible to handle. Still, it can take experienced and vast legal knowledge to address the issues as well as possible, so having legal professionals for support is wise.