Verbal Agreements in South Africa: What You Need to Know

In South Africa, verbal agreements are generally recognized as legally binding contracts. This means that if two parties agree on something orally, they can be held accountable for their agreement in a court of law.

However, there are some caveats to consider when entering into verbal agreements in South Africa. Let`s take a closer look at what you need to know.

What constitutes a verbal agreement?

A verbal agreement is any agreement made using spoken language rather than in writing. This can include agreements made in person, over the phone, or on video conference.

Examples of verbal agreements can include anything from agreeing to purchase goods or services from a vendor, to agreeing to rent a property, to agreeing to settle a dispute without going to court.

Are all verbal agreements enforceable by law?

While verbal agreements are generally enforceable by law in South Africa, there are some exceptions. For example, agreements that are required to be in writing by law – such as agreements involving the sale of immovable property – cannot be enforced without a written contract.

Additionally, some verbal agreements may be unenforceable if they violate the law or public policy. For instance, if two parties agree to engage in an illegal activity or violate a law, that agreement will not be enforceable.

How can you protect yourself when entering into verbal agreements?

One way to protect yourself when entering into verbal agreements is to follow up with an email or written confirmation that outlines the terms of the agreement. This can help ensure that both parties remember and agree to the terms of the agreement.

Another way to protect yourself is to seek legal advice before entering into any verbal agreements, especially if the agreement involves a significant financial or legal obligation.

Finally, it is always a good idea to try to avoid verbal agreements altogether and opt for a written contract whenever possible. This can help avoid misunderstandings and ensure that both parties are fully aware of the terms and consequences of the agreement.

In conclusion, while verbal agreements can be legally binding in South Africa, it is important to be aware of the limitations and risks involved. By taking steps to protect yourself and seeking legal advice when necessary, you can help ensure that your verbal agreements are enforceable and legally binding.