Is a Verbal Agreement Legally Binding? Find Out What the Civil Code Says, When a Verbal Agreement is Void, and How to Protect Yourself in a Dispute. A Full Legal Analysis.

In our daily lives, we constantly enter into verbal agreements. Whether it's lending money to a friend, agreeing on a job with a contractor, or buying a product at a market, we often rely on a "person's word." But what happens when the other party breaches the terms? Does your "verbal contract" have any legal force?

This article explains in detail the legal status of verbal agreements under Georgian law, their advantages, hidden dangers, and most importantly, answers the question: what are the risks of a verbal agreement?

What is a Verbal Agreement and Does the Law Recognize It?

Yes, it does. According to the Civil Code of Georgia, a transaction (agreement) may be concluded orally, in writing, or by conclusive action (for example, when you board a bus, you automatically agree to pay the fare).
* A verbal agreement is an expression of will by two or more parties, aimed at achieving a legal outcome (e.g., the sale of goods, provision of services), which is not recorded in a written document.

The general principle of the law is as follows: If the law or the agreement between the parties does not require a specific form for the transaction (such as in writing), then the oral form is sufficient and has the same legal force as a written one.

The main weak point of a verbal agreement is not its validity, but the difficulty of proof.

When is a Verbal Agreement Not Enough? (Mandatory Written Form)

The law explicitly provides for cases where "trusting a word" is not sufficient, and the agreement will be void (invalid) if it is not executed in writing.
A verbal agreement is void (has no legal force) in the following cases:

1. Real Estate Transactions: The purchase, sale, gifting, or mortgaging of a house, apartment, or land plot, and other related transactions. These agreements require not only a written form but also registration in the Public Registry.

2. Suretyship (Guarantee): When one person (the surety) assumes responsibility for another person's obligation, this agreement must be in writing.

3. Loans Between Legal Entities: A loan agreement between companies must always be in writing.

4. Other Cases Provided by Law: For example, the transfer of copyright, licensing agreements, etc.

Advice: If your agreement involves a large sum of money, real estate, or long-term obligations, do not take the risk always demand a written form.

"Who Will Prove It?" – The Main Challenge of a Verbal Agreement

Imagine a scenario: You verbally agreed with a designer to build a website for 2000 GEL. They completed the work, but not as you agreed. Or, you paid them, but they claim you agreed on 3000 GEL.

In the event of a dispute in court, the burden of proof will fall on you. You must prove:

* That the agreement took place at all.

* What the exact terms of this agreement were (price, deadlines, quality).

How to Prove a Verbal Agreement in Court?

Although difficult, it is not impossible. The following can be used as evidence:

1. Witnesses: People who were present during your agreement.

2. Electronic Correspondence: Emails, Messenger, WhatsApp, or SMS messages where the terms of the agreement are visible or indirectly confirmed. (This is already quasi-written evidence).

3. Audio or Video Recordings: (Note that the legality of how the recording was obtained may be a factor).

4. Bank Transfers: If you transferred money and specified the purpose in the description (e.g., "advance payment for work"), this is a strong argument.

5. Indirect Evidence: For example, a portion of the completed work, partial acceptance acts, etc.

A verbal agreement has legal force, but this is often only a theoretical advantage. In practice, proving a breached promise in court is a difficult, expensive, and stressful process.

Final Advice:

* Small Transactions: You can rely on a verbal agreement, but try to make the payment via a bank transfer and specify the purpose.

* Medium and Large Transactions: (e.g., loans, renovations, buying a car, business partnerships) always execute a written contract. Even if it's just one page, make sure the main conditions, parties' details, and signatures are fixed.