Louisiana Verbal Contract Laws: What You Need to Know

In Louisiana, verbal contracts are just as legally binding as written contracts. However, when it comes to enforcing them in court, a verbal contract can be more difficult to prove than a written contract. That being said, it is still important to understand the laws surrounding verbal contracts in Louisiana.

When is a Verbal Agreement Enforceable in Louisiana?

As mentioned, verbal agreements are enforceable under Louisiana law. However, there are certain requirements that must be met for a verbal contract to be considered legally valid. These requirements include:

1. Offer and Acceptance: Both parties must agree to the terms of the contract. This is known as offer and acceptance.

2. Consideration: Both parties must have something to gain or lose – this is known as consideration. Consideration can be anything of value including money, goods, or services.

3. Legality: The contract must be legal. Any agreement to do something illegal is not enforceable.

4. Capacity: Both parties must have the legal capacity to enter into a contract. This means they must be of legal age and not under duress or coercion.

Proving a Verbal Agreement in Court

In Louisiana, proving a verbal agreement in court can be challenging. Generally, it is up to the party seeking to enforce the contract to prove its existence. This can be done through witness testimony or other evidence that demonstrates the parties’ intent to enter into a contract. Even in the absence of a written agreement, it is important to keep records of conversations and agreements made with the other party.

Statute of Limitations

Like other types of contracts, verbal contracts are subject to a statute of limitations. In Louisiana, the statute of limitations for verbal contracts is ten years from the date the contract was made. After this time period, the contract cannot be enforced in court.

What to Do if a Verbal Agreement is Breached

If one party breaches a verbal agreement, the other party may be entitled to damages. However, in order to receive damages, the other party must be able to prove that the contract existed and that the breach caused them harm. It is important to keep records of conversations and agreements made with the other party, as this evidence may be useful in court.

Conclusion

Verbal agreements are legally enforceable in Louisiana, provided they meet the legal requirements for a contract. However, proving the existence of a verbal agreement in court can be challenging, so it is important to keep records of conversations and agreements made with the other party. If a verbal agreement is breached, the other party may be entitled to damages, but they must be able to prove the breach caused them harm. Understanding the laws surrounding verbal contracts in Louisiana can help parties protect themselves in business and personal transactions.