Deals often begin with a conversation. In many businesses across the UK, agreements are made quickly—over a call, in a meeting, or with a handshake. But once that handshake is over, one key question comes up: can a verbal agreement hold up in law?

Let’s explore how UK law treats these arrangements, where the risks lie, and how to protect your business when nothing has been put in writing.

Can a Verbal Agreement Be Legally Enforced?

Yes, a verbal agreement can be legally binding in the UK. You don’t always need a written contract for it to be enforceable. As long as there is a clear agreement, some form of value exchanged (such as goods, services, or payment), and both parties intended the deal to carry legal consequences, then the agreement can stand in court.

In most business situations, that intention is assumed. This means verbal contracts can carry just as much legal weight as written ones—unless the law specifically says otherwise.

When a Verbal Contract Isn’t Enough

UK law does require some contracts to be written down. If a verbal contract falls under any of the following, it will not be enforceable unless the terms are in writing:

  • Transactions involving land or property (e.g. selling, leasing, or transferring ownership)
  • Leases that last longer than three years
  • Personal guarantees (such as agreeing to cover someone else’s debt)
  • Consumer credit agreements (like loans or finance contracts)

These rules come from laws such as the Law of Property Act 1925 and the Consumer Credit Act 1974. If your agreement touches any of these areas, a written contract is essential.

Why Verbal Agreements Can Be Risky

The issue isn’t usually the legal status of a verbal agreement—it’s proving it exists.

When a dispute arises, it’s much harder to show what was agreed without something written down. The other party may remember things differently or deny parts of the deal entirely. This creates a legal grey area that can be hard to untangle.

Courts in the UK will still consider other types of evidence. Emails, text messages, payment receipts, or witness statements can all help support your case. But even with this, the outcome isn’t always predictable.

How to Protect Your Business

Verbal agreements may be convenient, but they shouldn’t replace good practice. If you make a deal verbally, it’s wise to follow it up with a quick written summary. A short email confirming what was agreed helps create a paper trail.

Always use a formal written contract for bigger deals or anything involving legal risks. This protects both sides, gives you something to rely on in case of disagreement, and helps avoid legal problems.

It’s also worth getting legal advice when dealing with unfamiliar terms or large sums. A solicitor can help you understand if your agreement meets the conditions of UK contract law and guide you on the safest approach.

Final Thoughts

A verbal contract in business can be valid, but it’s rarely the best option for protecting your interests. UK law recognises these agreements—but only if the basic elements of a contract are present and the subject matter doesn’t require written proof.

To stay on the safe side, document your deals and don’t rely on memory alone. In business, a few simple steps can prevent big problems later.