When it comes to business deals and agreements, the phrase “get it in writing” is often emphasized for good reason. Written contracts and agreements serve as a legal document that can protect both parties involved. However, there are instances where a verbal agreement may be preferred over a signed one.

Verbal agreements can be just as legally binding as written ones, as long as they meet certain requirements. These include a clear offer and acceptance, and an agreement on the terms and conditions of the agreement. In fact, many small business deals and agreements are made verbally, such as handshake agreements, phone agreements, and even email agreements.

There are several reasons why a verbal agreement may be preferred over a signed one. First, it can save time and money. Written agreements can often involve lengthy negotiations and review processes, which can take weeks or even months to finalize. In contrast, verbal agreements can be made quickly and easily, as long as both parties are clear on the terms and conditions.

Another advantage of verbal agreements is that they can foster stronger relationships between parties. This is particularly true in small business settings, where personal connections and trust may be more important than the legalities of a written contract. Verbal agreements can demonstrate a willingness to work together and build a partnership, which can lead to long-term success.

Of course, there are also disadvantages to relying solely on a verbal agreement. One of the biggest risks is the potential for misunderstandings or disagreements. Without a written document to refer to, it can be difficult to recall exactly what was agreed upon, or to prove that an agreement even took place. This can lead to disputes and even legal action.

Another risk is that verbal agreements may not be enforceable in certain situations. For example, certain contracts may be required to be in writing by law, such as contracts for the sale of goods over a certain value, or contracts that involve real estate. Without a written document, parties may be unable to enforce the agreement if legal action becomes necessary.

In conclusion, while verbal agreements can be a useful tool in certain circumstances, it’s important to exercise caution and consideration before relying solely on them. For important business deals and agreements, it’s usually recommended to get everything in writing to protect both parties involved. However, for smaller agreements made between trusted partners, a verbal agreement may be a convenient and effective option.