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Verbal contracts – are they valid?

Last updated May 31 2022 | Litigation

by Joseph Navas

by Joseph Navas

Director & Solicitor

In this article

What makes a verbal or written contract legally valid?

For most contracts to be valid they must satisfy four elements:

  1. There must be an offer made (the offer element)
  2. The offer must be accepted (the acceptance element)
  3. There must be some form of consideration, usually money from one party and goods or services from the other (the consideration element)
  4. The parties must intend to create a legally binding agreement (the intention element)

If a contract doesn’t meet these four criteria, one side may argue that there wasn’t a contract agreed in the first place.

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