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Can businesses enforce oral agreements in Oklahoma?

On Behalf of | Jan 28, 2025 | Business Law |

Businesses of all purposes and sizes rely on contracts to manage their operations. If one party does not fulfill their contractual obligations, the other has the option of going to civil court to enforce the agreement. Written contracts provide a solid basis for enforcement efforts. They also make it clear what promises each party made, which can help with the private resolution of conflict after an alleged contract breach occurs.

Sometimes, professionals and businesses in Oklahoma negotiate verbal agreements or oral contracts. Are those agreements technically enforceable under the law?

Verbal contracts are theoretically valid

Oklahoma state statutes clearly allow for the enforcement of verbal agreements. The law makes a verbal agreement enforceable unless state statutes require a written contract.

Scenarios that require written agreements include arrangements related to insurance coverage and real estate transactions. In scenarios where there are many details that may change from one agreement to the next, a written contract is typically a better option than a verbal agreement even if the state does not require a written agreement.

By committing details to writing, businesses negotiating contracts can limit the likelihood of contract breaches occurring. They can make the terms they agreed upon more readily enforceable in civil court. In scenarios involving verbal agreements, contract enforcement can become more complicated. However, it is still possible.

Learning more about the laws that govern business operations and conflicts can help executives and business owners protect against misconduct and fraud. Those facing a dispute related to a verbal agreement may need to evaluate the situation to determine what forms of recourse may be available to them. Business litigation is sometimes necessary to resolve contract-related disputes.

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