Can a Verbal Agreement Hold Up in Ontario Court?

In everyday life, many people make deals with a simple handshake or a quick conversation. Whether it involves selling a used car, renting out a room, or hiring someone for a one-time job, verbal agreements are common. But when a disagreement arises, can a spoken contract really be enforced in court?

In Ontario, the answer is yes. A verbal agreement can be just as legally binding as a written one, provided certain conditions are met. The law recognizes a contract as valid when three essential elements are present: an offer, an acceptance, and something of value exchanged between the parties. For example, if someone agrees to pay another person five hundred dollars for landscaping services, and that person accepts and completes the work, a valid contract likely exists.

However, the real issue is not always whether the agreement is legal but whether it can be proven. Verbal contracts lack the clear documentation that written contracts provide. If one party denies the agreement or disputes the terms, it becomes much harder to prove what was actually agreed upon. In such cases, courts will look for supporting evidence such as witness accounts, payment records, text messages, emails, or any behavior that shows an agreement took place.

Although many verbal agreements are enforceable, some types of contracts must be in writing to be valid. These include real estate transactions, leases longer than one year, agreements to guarantee someone else’s debt, and wills. This requirement comes from the Statute of Frauds, which has long been part of Ontario’s legal framework. In these situations, a verbal promise will not stand up in court if challenged.

For simple, everyday agreements, a written contract is not always necessary. Still, having something in writing is often wise. A quick email or text message confirming the key details can help prevent misunderstandings and provide useful evidence if a dispute arises.

While verbal agreements are legal in many situations, they come with practical risks. Without written terms, it is much easier for confusion or disagreement to arise later. Putting even a basic version of the agreement in writing is a smart way to avoid unnecessary problems.