It is important to note that all contracts are valid agreements, but not all agreements are considered valid contracts. Therefore, a valid agreement and an enforceable agreement constitutes a complete and systematic merger of the elements essential to its validity and existence. What makes an agreement valid is the first thing to discuss. The process of the agreement begins with the legal provisions of the Indian Contract Act. Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. For a verbal agreement to be binding, the elements of a valid contract must be present. To illustrate how the elements of a contract create binding conditions in an oral agreement, we use the example of a man who borrows $200 from his aunt to replace a flat tire. In general, most oral contracts are legally binding. However, there are few exceptions that depend on the structure of the agreement and the reason for the agreement. In many cases, it is nice to develop a written agreement to avoid differences of opinion.
At the end of the day, all that can be said is that agreements, when they are oral, are still applicable, but are not generally recommended when the contract deals with large transactions and regulates relations between large corporations such as large commercial real estate, etc. Even if such oral agreements have already been entered into, applicants can prove the existence of essential elements of a contract and, by providing admissible evidence, the applicant can continue to appeal to the courts, as justice cannot be denied only if a written agreement is not available, if alternative evidence supports a complainant`s allegation. Perhaps this is the evidence that a person could provide to prove his or her right. Oral chords are risky and unsafe, because you don`t know when someone will come back in their own words. It is therefore difficult to prove these concrete words when an argument arises. That is why it is important that an oral agreement is ready to prove it in the future. Both parties should prove their verbal agreement so that it may be useful to prove their own words. Because of their risky nature, oral agreements are excluded as evidence under Section 92 of the Indian Evidence Act, as a written agreement always prevails over an oral agreement. The authenticity of the written agreement will always be greater than the oral agreement. In this article, Himanshu Sharma, NUJS` Diploma in Entrepreneurship Administration and Business Laws, Kolkat discusses the applicability of oral agreements under Indian law.
A promise is essentially an offer or proposal made by one person or institution to another. The agreement of the other leads to the acceptance of the offer; and reach an agreement. These cases show that oral consent is legally applicable, but proof of such an agreement is a huge task. A written agreement is itself proof that there has been agreement, but an oral agreement is only an oral communication of proposals and acceptance, which will be difficult to prove in the future in the event of a dispute. The burden of proof rests entirely with the person who asserted the right to prove the existence of an oral agreement. Such an oral agreement can be proved either by the registration of such an agreement at the time of the innition, or by a witness with whom such an agreement took place. Contractual terms must not be presented in a vague, incomplete or erroneous manner. In other words, there should be an agreement on who the contracting parties are, on each party`s obligations, on the price to be paid and on the purpose of the contract. The conditions between aunt and nephew are