A construction project can begin with a handshake, a phone call or a simple conversation. While many people assume a written contract is required before legal action is possible, that is not always true.
In some situations, a verbal construction agreement may still be legally enforceable. However, the challenge is proving exactly what both parties have agreed to when there is no signed document to reference.
Are verbal construction agreements legally valid?
Verbal construction agreements can be legally valid in Texas, but enforcing them may be more difficult than enforcing a written contract. Under Texas law, an oral contract is enforceable if the parties reached an agreement on the essential terms, intended to be bound by it and each side provided something of value, such as payment or construction services.
However, not every agreement can be made verbally. Some contracts must be in writing to be enforceable under the Texas Statute of Frauds. While many residential construction projects can begin with an oral agreement, certain circumstances, such as contracts that cannot reasonably be performed within one year, require a written contract.
In a construction dispute, the court will examine the conduct of both parties to determine whether a valid agreement existed. Evidence that may support an oral contract includes:
- Text messages or emails discussing the project
- Estimates, invoices or receipts
- Proof of payments
- Building permits or inspection records
- Photographs showing completed work
- Testimony from witnesses familiar with the agreement
Texas courts can also consider whether one party partially performed the agreement. For example, if a contractor completed the work and the property owner accepted the benefits of that work, or if the owner made partial payments, those actions may support the existence of an enforceable agreement.
If you are dealing with a verbal legal agreement concern, know that a legal practitioner can help review the facts of your case, determine whether the agreement may be enforceable under Texas law and explain the legal options available to you.
