Florida Laws on Verbal Contracts
An oral (or verbal) contract is a legally recognized contract entered into with spoken words, and either no writing or a partial writing. It is because there is no writing that oral contracts can be difficult to enforce. In order to verify the terms of the contract, or that it even existed, it must be proved by additional external factors.
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Reliance
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One way that an oral contract can be verified is if someone relies on the contract and takes certain action. If two people orally agree that one person will provide a service such as painting a fence, for instance, then a contract is outlined. Once the service is complete, the painter can ask for his fee, and can use the painted fence, any bought items, and his reliance on the fee as evidence that a contract existed.
Fraud
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The Florida Statute of Fraud, located in Florida general statute 725.01 (2005), is also known as the section on unenforceable contracts. The statute makes unenforceable those contracts that fail to meet certain requirements. For example, a contract that will take more than one year to complete will be found to be within the statute of frauds, and therefore will be considered by a court as unenforceable.
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Requirements
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There are a variety of topics that cannot be agreed to by an oral agreement because of the statute. Among those topics are claiming a financial obligation on behalf of another, any agreement for the transfer of property, a contract regarding marriage, and any agreement concerning medical results (i.e. surgical or diagnostic results). An oral agreement concerning any of the topics listed in the statute will be held by court to be unenforceable.
Performance
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The statute of frauds does provide some protection for a person who has performed her entire obligation under an oral contract. Specifically, the statute of frauds cannot be used as a defense against a person who has performed and completed her obligation under an oral contract. This issue is heavily linked to the legal concept of reliance, and any question about an oral contract should be referred to a local legal professional.
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References
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