Legal Question in Construction Law in California
Is a verbal agreement legally binding in the state of California?
6 Answers from Attorneys
Yes, except as to the transfer of real estate.
Generally. There are a few contracts that must be in writing, the big one being transfer of real estate. The big problem is that a verbal contract is harder to prove.
There are some exceptions - transfer of real property being one. It really depends on what you are trying to agree to. I would suggest that you consult with an attorney providing specifics as to what the oral agreement is attempting to do to determine its enforceability.
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Since you asked this under Construction Law, I would add that a construction contract for over $500, although generally enforceable, would be a violation of the Contractor's State License law and regulations, and would subject the contractor to license discipline, it would also probably be a violation of the terms of the license bond, and lastly, because it is a violation of the law most courts would decide any dispute over the contract's terms in favor of the other party unless there was very strong evidence for the contractor's position.
See Civil Code seection 1624 for California's basic "Statute of Frauds" which lists contracts that supposedly must be in a signed writing. There are a few others in other codes, such as the Commercial Code, Business & Professions Code, etc. "Statute of Frauds" is an old term for a law requiring certain contracts to be in writing in order to prevent fraudulent claims arising from alleged oral agreements.
I think it was Sam Goldwyn who said an oral contract is not worth the paper it's printed on.