Verbal Agreements in Montana: What You Need to Know

In Montana, verbal agreements hold legal weight and can be enforced in court. However, it is important to understand the limitations and risks involved in relying solely on a verbal agreement.

First, it is important to note that certain types of contracts, such as those for the sale of goods worth more than $500 or for the transfer of real estate, must be in writing to be legally enforceable. Verbal agreements in these cases would not hold up in court.

Additionally, even for verbal agreements that are technically legally binding, proving the terms of the agreement can be difficult without written documentation. This is especially true if there is a dispute between the parties.

To protect yourself and ensure clarity, it is always best to have a written contract whenever possible. This can help ensure that all parties are on the same page regarding the terms and expectations of the agreement.

However, if you do enter into a verbal agreement, there are steps you can take to protect yourself. First, make sure all parties clearly understand the terms of the agreement and agree to them before proceeding. It can also be helpful to have a neutral third-party witness or document the conversation in some way, such as through an email or text message.

If a dispute does arise, it may be helpful to seek legal advice to determine your rights and options. Montana does not have a small claims court, but disputes involving less than $7,000 can be brought to the Justice Court or the District Court.

In conclusion, while verbal agreements can be enforceable in Montana, it is important to be aware of the limitations and risks involved. Whenever possible, it is best to have a written contract to ensure clarity and protection for all parties involved.