Verbal Agreements in Alberta: What You Need to Know

When it comes to legal agreements, most people think of a written contract. However, verbal agreements can also hold weight in certain situations, including in Alberta. In this article, we’ll cover the basics of verbal agreements in Alberta, including what they are, when they’re enforceable, and how to protect yourself if you enter into one.

What is a Verbal Agreement?

A verbal agreement is simply an agreement that is made orally, without a written contract. While it’s always recommended to have a written agreement, verbal agreements can be legally binding in some situations. Verbal agreements can cover a wide range of topics, from employment contracts to lease agreements to sales contracts.

When are Verbal Agreements Enforceable in Alberta?

In Alberta, verbal agreements can be enforceable if there is evidence that a legally binding agreement was made. This evidence can include witness testimony, emails, text messages, or any other documentation that shows the agreement was made and the terms agreed to.

However, not all verbal agreements are enforceable. For example, verbal agreements for the sale of land are generally not enforceable under Alberta law. Additionally, certain contracts, such as those related to employment or real estate, must be in writing in order to be enforceable.

Tips for Protecting Yourself in a Verbal Agreement

While verbal agreements can be enforceable, they can also be risky. Here are some tips to help protect yourself if you enter into a verbal agreement:

1. Get it in writing: Even if you’ve already agreed to something verbally, it’s always a good idea to get it in writing. This can help avoid misunderstandings and provide evidence if the agreement is disputed.

2. Keep records: Keep a record of any conversations or correspondence related to the agreement, including emails or text messages. This can help provide evidence if the agreement is disputed.

3. Get legal advice: If you’re unsure about the enforceability of a verbal agreement, or if you need help drafting a written contract, it’s always a good idea to seek legal advice.

Conclusion

While written contracts are always recommended, verbal agreements can be legally binding in Alberta in certain situations. However, it’s important to take steps to protect yourself if you enter into a verbal agreement. By following the tips outlined above, you can help ensure that your verbal agreement is enforceable and protect your interests.