Please note that there are other elements that must be present for a valid contract (verbally or in writing). Other necessary elements include: you may have wondered whether your oral contract was considered valid in court. Oral contracts can be considered binding and enforceable in court. For many reasons – including questions about the evidence and the applicable statute of limitations (a limitation period is the time to file a complaint), you should sign your contracts in writing. Oral code: le.utah.gov/xcode/Title78B/Chapter2/78B-2-S302.html code in writing: le.utah.gov/xcode/Title78B/Chapter2/78B-2-S309.html Most contracts can be written or orally and are still enforceable, but some agreements must be written to be binding, says a Utah Contract Lawyer. However, oral contracts are very difficult to enforce because there is no clear record of offer, consideration and acceptance. Nevertheless, it is important to understand what types of contracts must be written in order to be valid. In addition, there are many defenses that an opposing party can use to reject your violation of oral contractual rights – which would otherwise not be available if the contract were written. For example, there is a law called the Statute of Frauds, which states that certain types of agreements must be concluded in writing to be enforceable in court. These agreements include, among other things, the transfer or sale of land, agreements that are not concluded within one year of the conclusion of the agreement, credit contracts, an agreement to cover the debts or obligations of another, or contracts for the sale of goods worth $500 or more. See Utah code 25-5-1, 25-5-3, 25-5-4 and 70A-2-201. Although other types of contracts may be oral, it is advisable to “receive them in writing” to ensure that both parties understand their obligations.
If judicial enforcement is necessary, a written contract shows the obligations of the parties and avoids a “he said, she says” dispute. It is easier to check before signing with a lawyer whether a contract is valid than to impose a poorly developed agreement after the problems that arise. While breaching contractual actions can be costly for your business, non-binding agreements that you thought were cemented by contract law can also be costly. As a general rule, the following types of contracts must be executed in writing to be enforceable.