Category: Contracts

Are oral contracts enforceable by law? A contract can be written, oral or even implied by the actions of the involved parties. While written contracts can clearly be enforced in a court of law, people often ask Denver contract lawyers whether they have any legal recourse in the event of a breach of oral contract.

Can an oral agreement actually be enforced? Whether you’re thinking about agreeing to an oral contract or you’ve already entered into one and the other party isn’t fulfilling their end of the deal, this is an important question to consider, and one that could lead to a breach of contract and the need for a contract lawyer.

Oral contracts are enforceable in many instances, despite popular belief. In most situations, though, you are usually better off placing your contract in writing. Trying to enforce an oral contract often results in a “he said, she said” battle, and without proper evidence, it can be difficult to achieve the desired outcome.  This is why it’s much more preferable to use a Denver contract lawyer that is well versed in contract formation to create a written contract, as opposed to using an oral contract.

Colorado Statutes of Frauds

There are, however, instances in which an oral contract is not acceptable on its own. Colorado has numerous statutes of frauds which governs such situations.  Statutes of frauds exist in Colorado to prevent deceitful conduct in certain high-value, easily lied about, and/or long-term situations. Colorado Statutes of Frauds require a written contract in situations, including, but not limited to:

• Real estate sales (CRS § 38-10-108)
• Real estate lease agreements lasting longer than one year (CRS § 38-10-108)
• Credit agreements greater than $25,000 (CRS § 38-10-124)
• Contracts that take more than one year to complete (CRS § 38-10-112(1)(a))
• Contracts to pay someone else’s debt (CRS § 38-10-112(1)(b))
• Contracts for the sale of goods over $500 which have not been specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of business (CRS § 4-2-201)
• Contracts to lease goods with total lease payments over $1,000 which have not been specially manufactured or obtained for the lessee and are not suitable for lease or sale to others in the ordinary course of business (CRS § 4-2.5-201)
• Contracts made upon consideration of marriage, except mutual promises to marry (CRS § 38-10-112(1)(c))

In most instances, courts will not enforce oral contracts that fall into these categories. In order to be enforceable, there usually needs to be some sort of written document which is sufficiently detailed to evidence a meeting of the minds between the contracting parties as to the essential contract terms which has either been signed by the party to be held liable or at least acknowledged in writing by that party. 

However, there are a few situations in which an oral contract can be enforced even if it is in one of these categories. If one party partially complied and/or performed with the terms of the oral contract or if the plaintiff relied on the defendant’s promise and suffered a major problem as the result, the court may still enforce the oral contract.

The law does not favor oral contracts, but in many situations, they can be enforced by the court. However, the burden of providing evidence falls on the person asserting that an oral contract exists. You are much more likely to receive a favorable judgment from the court if you are able to provide at least some kind of evidence or documentation, like emails, text messages, or cancelled checks, to provide circumstantial evidence of the existence of an oral contract.

If you need help enforcing an oral contract, or with another issue such as non-compete agreements in Colorado, contact Hansen Law Firm. For a free consultation, please call 303-785-7777.

The information on this website is intended to be general information only and not legal advice. Laws change frequently and the information on this website may not be up to date, nor is the information intended to be fully comprehensive. For legal advice specific to your case, you will need to contact and then agree in writing to retain the Hansen Law Firm or another licensed attorney.