Are verbal agreements legally binding?

A contract doesn't need paper or signatures. A spoken agreement is generally enforceable if it has the same elements as a written one:

• Offer and acceptance. One side proposes terms and the other accepts them, whether by saying yes or by acting on the deal, such as starting the work or paying a deposit.
• Consideration. Each side gives something of value, usually money in exchange for goods or services.
• Intention to be legally bound. Both sides meant it as a binding arrangement, not a casual or social promise.
• Certainty. The key terms, such as what's being supplied and the price, are clear enough to enforce.

A handshake deal to do a job for money is a commercial contract just like a signed one.

Some agreements can't be enforced unless they're in writing, or recorded in writing and signed by the person you want to hold to them. The main ones for businesses are:

• Contracts for the sale or other disposition of land. See, for example, section 54A of the Conveyancing Act 1919 (NSW), section 126 of the Instruments Act 1958 (Vic) and section 7 of the Property Law Act 2023 (Qld).
• Guarantees. In some states, a promise to pay someone else's debt must be in writing and signed, for example in Victoria and Queensland.
• Industry-specific contracts. Some laws require written contracts for particular work, such as certain building contracts in Queensland.

If your deal falls into one of these categories, don't rely on a conversation.

Most disputes over verbal agreements aren't about whether a contract existed. They're about what was agreed. Memories differ on price, scope, deadlines and who pays for extras.

If a dispute goes to court, the court looks at the evidence: emails, texts, quotes, invoices, payments, what each side did, and what witnesses heard. If neither side can prove the agreement or its terms, the court may not enforce it at all.

After any phone call or meeting where you agree terms, send a short confirmation the same day. Cover:

• who the parties are, using full business names
• what you'll supply and by when
• the price, payment terms and any deposit
• anything else you discussed, such as variations or warranties

Ask the other side to reply confirming. A confirmed email won't fix every gap, but it turns a "he said, she said" dispute into a documented one.

For larger, ongoing or higher-risk work, use a proper written contract. A Sprintlaw lawyer can prepare one for a fixed fee.

Write down your recollection of the conversation now, including the date, who was there and what each person said. Notes made close to the time are more persuasive than memories months later.

Then gather everything that supports your version, such as messages, quotes, invoices and bank records, and set out your understanding of the deal in writing to the other side. Many disagreements settle once both sides see the paper trail. If not, mediation or a small claims process may be the next step.