Oral contracts are enforceable in many situations. If you made an agreement with someone on a handshake and they didn’t hold up their end, you might be wondering whether you have any legal options. The short answer is yes. In most cases, an oral contract is just as enforceable as a written one under Nevada law.
That said, there are important exceptions, and proving the terms of a verbal agreement comes with its challenges. Below, we break down what you need to know about oral contracts in Nevada and when you should talk to an attorney.
If you have further questions or need representation, H&P Law is here to help. Our Las Vegas personal injury lawyers have over 60 years of combined experience and are prepared to meet with you for a free consultation.
What Makes a Contract Legally Valid in Nevada?
Whether it’s typed up by a lawyer or agreed to over the phone, a contract in Nevada needs the same basic elements to be enforceable. To bring a successful breach-of-contract claim, the plaintiff has to prove the following three things:
- A valid contract existed between the parties
- The defendant breached that contract
- The breach caused damages
This standard comes from Golden v. McKim, 37 Nev. 205, 141 P. 676, 678 (1914). It applies to both oral and written contracts. Under this legal standard, the form that the agreement takes doesn’t determine whether it’s valid. What matters is whether these elements are met. A lawyer can answer questions about this standard and explain whether oral contracts are enforceable.
Which Contracts Have to Be in Writing?
Nevada law does require certain types of contracts to be in writing to be enforceable. These fall under what’s known as the statute of frauds, a legal principle that dates back to 17th-century England and has been adopted in some form by every U.S. state.
In Nevada, the following contracts must be in writing:
- Agreements that can’t be performed within one year of formation
- Promises to pay or guarantee someone else’s debt
- Promises made in consideration of marriage, such as prenuptial agreements
- Commitments by lenders to loan or extend credit of $100,000 or more
- Promises to pay a fee of $1,000 or more for getting a loan for another person
- Marriage contracts and settlements, including stipulated divorce decrees
- Contracts for the sale of real estate
- Grants or assignments of an existing trust
- Contracts for the sale of goods priced at $500 or more
These rules aren’t always as clear-cut as they look. For example, the $500 goods rule applies differently depending on whether the parties involved are merchants, and contracts for goods that have already been accepted and either received or paid for may be enforceable even without a written agreement.
An attorney from H&P Law can explain which contracts have to be in writing and whether oral contracts are enforceable.
Why Is It Harder to Enforce an Oral Contract?
Just because some oral contracts are enforceable doesn’t mean that it’s an easy thing to do. The biggest challenge is proof. With a written contract, the document speaks for itself. With a verbal agreement, you’re relying on the memories and credibility of the people involved in the oral agreement.
Nevada also gives you less time to act on an oral contract. The statute of limitations for a breach of an oral contract is four years, compared to six years for a written one. If you wait too long to take action, you could lose your right to pursue a claim entirely.
This is exactly why our attorneys at H&P Law recommend putting agreements in writing whenever possible. But if you’re already in a situation where your contract was verbal, the fact that nothing was signed doesn’t necessarily mean you’re out of options. An attorney can explain your options and further explain whether an oral contract is enforceable.
What Should You Do If Someone Breaks a Verbal Agreement?
If someone fails to follow through on an oral agreement and it costs you money or causes other damages, you may benefit from talking to an attorney. A lawyer from H&P Law can evaluate the specifics of your situation and determine what your best course of action is.
An experienced attorney can help you determine whether your oral contract is enforceable, gather the evidence needed to prove the terms, and pursue the compensation you’re owed.
Learn More About Whether Oral Contracts Are Enforceable
At H&P Law, our highly experienced attorneys can provide the guidance and representation you need to face difficult legal matters. Our team has recovered more than $100 million in damages for clients like you.
We have an Avvo 10.0 Superb Rating, a Nevada Business Legal Elite Award, and have been Super Lawyers Top Rated for multiple years. Whether you’re wondering whether oral contracts are enforceable, need guidance after a car accident, or need help with another legal matter, reach out to our team.
You can schedule a free consultation with us to find out if you have grounds for a claim and get the assistance you deserve.
