Acquisition Law and Oral Contracts

2657 Words11 Pages
Abstract Many individuals do not understand the full significance of the terms outlined in a contract until they find themselves at the receiving end of litigation. In addition, they do not recognize that a contract can be established with as little as a verbal agreement between parties which can, as with a written contract, become the basis to award damages in the event that one or more members default on the agreement. When individuals make purchases they form contracts with the entity whose business they patronize. Formation of a contract for sale need only entail an offer and acceptance between parties and is legally binding when agreement and consideration are ascertained. The purpose of this paper is to address legal…show more content…
Even if oral contract law is followed, an oral contract is often easily contested usually by repudiation of its existence from the defending party. It is risky to conduct any buying transaction without records to track the details of a purchase but there are some legal safeguards in place to ensure that when oral purchases are made parties who feel they did not receive appropriate recompense, merchandise, or services have the assurance that all is not completely lost. Before committing to an oral purchase it is best to evaluate every possibility that can help or hurt you in the event that the transaction ends less than harmoniously. What’s at Stake Oral purchases hold certain advantages and disadvantages depending on the needs of the parties involved. As there is little or no documentation, participating members have the convenience of completing a transaction much faster than those who make purchases involving written contracts. Additionally, purchases made orally are expedient in times when generating procurement documentation during implementation is limited or unavailable. Unfortunately, the disadvantages of making oral purchase considerably outweigh the benefits. The most prevalent is the inability to provide physical proof outlining the details of the transaction. If an oral purchase agreement turns sour chances are one or more members stand to lose more than what they bargained for. As such it is highly recommended that when
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