When making business deals and agreements, it`s not unusual to have discussions over the phone. At times, these talks can be the most efficient way to reach a mutual understanding and finalize an agreement. But, have you ever wondered what such agreements are called? Do you know the exact term for agreements made over the phone? If not, then keep reading!
An agreement that is made over the telephone is known as an oral contract or verbal agreement. Such agreements are considered binding if they meet certain criteria such as an offer, acceptance, and an exchange of something of value (also known as consideration). Essentially, it`s similar to a written contract, but instead of a physical copy, the terms and conditions are exchanged verbally.
Oral contracts can be entered into for various reasons, and they come in different forms. For example, parent consent over the phone for school trips, telephone orders with a company, and even informal agreements between friends. In any case, a verbal agreement still holds the same weight as a written one. Though, it can be difficult to prove the terms of the agreement without documentation.
As with any contract, it is essential to ensure that all parties involved are in agreement regarding the details discussed over the phone. To make sure that you have all the necessary information, it`s important to write down the terms that are discussed, including the date and time of the call, the parties involved, and what was agreed upon. This written record can be used as evidence should any dispute arise.
Furthermore, it`s important to be cautious while entering into an oral contract. Without a written agreement, it can be challenging to prove the terms of the contract if needed. It is always a good idea to follow up with an email describing the terms agreed upon over the phone, which can be used as written proof of the agreement. This can help solidify the agreement and avoid any potential disputes that may arise in the future.
In conclusion, an agreement made over the phone is known as an oral contract or verbal agreement. While such contracts are legal and binding, it is important to exercise caution and ensure that all parties involved are in agreement and have a clear understanding of the terms discussed over the phone. Writing down these terms and following up with an email can help avoid any potential disputes that may arise in the future.