Verbal Agreement Wisconsin: How to Protect Your Rights

In Wisconsin, verbal agreements are legally enforceable under certain conditions. A verbal agreement, also known as an oral agreement or a handshake deal, is a contract made without any written documentation. While it may seem like a casual and informal way of doing business, verbal agreements can be binding and may have serious consequences.

If you are involved in a verbal agreement in Wisconsin, it is essential to understand your legal rights and how to protect them. Here are some important things you need to know:

1. Verbal Agreements are Enforceable in Wisconsin

Contrary to popular belief, verbal agreements are just as legally binding as written agreements in Wisconsin. As long as the essential terms of the agreement can be identified, such as the parties involved, subject matter, consideration, and time of performance, the verbal agreement can be enforced by a court of law.

2. It’s Difficult to Prove the Terms of a Verbal Agreement

Unlike written contracts, verbal agreements are not documented and may be subject to different interpretations. Without written evidence, it can be challenging to prove what was agreed upon in a verbal agreement. This is why it’s critical to have a clear understanding of the terms of the agreement and to document them, if possible, through emails or text messages.

3. Verbal Agreements are Subject to Statutes of Limitations

In Wisconsin, the statute of limitations for enforcing a verbal agreement is six years. This means that if you want to sue someone for breaching a verbal agreement, you must do so within six years from the date the agreement was made. After that time, your legal rights may be forfeited.

4. Written Contracts are Safer

While verbal agreements are legally binding, they are not the safest way to do business. Written contracts are easier to enforce and offer more protection to both parties. A written contract clearly outlines the terms and conditions of the agreement, leaving no room for interpretation or misunderstandings.

To protect your rights and avoid potential legal disputes, it’s always a good idea to have a written contract in place, even if you have already agreed on the terms verbally. A written contract should specify the parties involved, the subject matter, the consideration, and the time of performance.

In conclusion, while verbal agreements are legally enforceable in Wisconsin, they may be fraught with uncertainty and risk. It’s always best to have a written contract in place. If you do find yourself involved in a verbal agreement, make sure to document the terms of the agreement and consult with an attorney if you have any questions or concerns. By taking these steps, you can protect your rights and avoid any potential legal headaches down the road.