How Valid Is a Verbal Agreement?
If you’ve ever shaken hands on a deal and later wondered whether that handshake would hold up in court, you’re not alone. I get asked about verbal agreements all the time – usually after a relationship has gone sideways. A text-message blowup. A former business partner who’s suddenly forgetful. A family member who insists they “never agreed to that.”
So, are verbal agreements actually binding in British Columbia?
Short answer: yes.
Longer answer: yes, but they’re risky, difficult to prove, and very often end in litigation for exactly that reason.
Here’s how verbal agreements actually work under BC law, and where people tend to get into trouble.
Verbal Agreements Can Be Contracts
In British Columbia, a contract doesn’t have to be written to be enforceable. The law looks for the usual elements: an offer, acceptance, consideration, and an intention to create legal relations. If those exist, a contract can be formed over a phone call, in a driveway, or while standing in line at Tim Hortons.
Courts do enforce verbal agreements. The problem usually isn’t whether a contract exists, it’s figuring out what the contract actually was.
Once it’s one person’s memory against another’s, things get messy very quickly.
The Real Issue Is Proof
Written contracts aren’t “better law.” They’re just better evidence.
With verbal agreements, disputes tend to involve:
- fuzzy memories,
- selective recall,
- missing details,
- and a lot of “that’s not what I said.”
Judges can only enforce terms they can identify with some confidence. When there’s no clear record, cases turn into credibility contests instead of straightforward contract disputes.
Sometimes you can piece things together using text messages, emails, invoices, bank transfers, or witnesses. But without contemporaneous records, verbal agreements are inherently fragile.
When a Verbal Agreement Isn’t Enough
Some agreements must be in writing to be enforceable. Common examples include:
- agreements involving the sale or transfer of land,
- guarantees (agreeing to pay someone else’s debt),
- wills and certain estate-related promises,
- and some consumer credit arrangements.
If real estate or guaranteed debt is involved, a handshake won’t get you very far.
Why Verbal Agreements End Up in Court
People rely on verbal agreements because they trust each other — until they don’t. Relationships change, expectations shift, and memories become conveniently flexible.
The disputes I see most often sound like this:
- “We agreed to split the profits 50/50.”
- “He said he’d pay me back after his bonus.”
- “She promised to transfer the property.”
- “We agreed he would buy out my share.”
Even when a judge believes one party over the other, missing terms — price, timing, scope, conditions — can sink the claim entirely.
A Practical Rule of Thumb
A verbal agreement might be valid.
A written agreement is provable.
And in court, provable usually wins.
An email confirming the deal is better than nothing. A text message is better than an email. A short written agreement is better than all of that. And a properly drafted contract is better still.
When to Involve a Lawyer
If an agreement involves money, property, business interests, or family relationships – in other words, anything people are likely to fight about – put it in writing and have it reviewed. A brief consultation upfront is almost always cheaper than litigating the fallout later.
Bottom Line
Verbal agreements aren’t meaningless. They’re just vulnerable. They depend on trust, memory, and goodwill – three things that tend to disappear once a dispute starts.
If something matters enough that you want it enforced, it matters enough to put it in writing.
And if you’re already dealing with a dispute over a verbal agreement, or you’re about to rely on one and want to protect yourself, get legal advice sooner rather than later. Fixing these problems after the fact is rarely simple or inexpensive.