TL;DR: Too long, Didn’t read
Yes, it is binding: A verbal contract is just as legally valid as a written one in the UK (with very few exceptions like buying a house).
The 3 Ingredients: To be valid, it must have an Offer, Acceptance, and Consideration (an exchange of value, like work for money).
The Hard Part: The problem isn’t the law; it is the proof. It is your word against theirs.
How to Win: You can prove a verbal contract using text messages, emails, witnesses, or even bank transfer records.
We make verbal agreements every day. “I’ll pay you £50 to fix my fence,” or “Finish this project and I’ll give you a bonus.” But what happens when the work is done, and the other person turns around and says, “I never signed anything”?
Is a verbal contract real? Yes.
Under UK law, a contract does not have to be written down to be enforceable. If you agreed to it, you are bound by it. The “I didn’t sign it” excuse does not work in court.
A Quick Story: Meet Jack
Jack works in sales. His manager says to him over coffee: “If you hit 100 sales this month, I’ll give you a £1,000 cash bonus.”
Jack works weekends and hits the target.
On payday, there is no bonus.
His manager laughs and says, “That was just a casual chat, Jack. It wasn’t in your employment contract.”
Jack thinks he has lost. He hasn’t.
The Verdict: Jack has a binding contract. The manager made a specific offer, Jack accepted it by doing the work, and there was consideration (extra effort for extra money). Jack can claim this money (unlawful deduction of wages).
The 3 Ingredients of a Valid Contract
How do you know if your chat was just “pub talk” or a real legal deal? It needs these three things:
1. Offer and Acceptance
One person must offer something specific (“I will buy your car for £2,000”) and the other must clearly accept it (“Deal”).
2. Consideration (The Exchange)
A contract isn’t a free gift. There must be a trade.
Valid: “I will pay you £50 if you mow my lawn.” (Money for Work).
Invalid: “I will give you £50 just because I like you.” (No exchange).
3. Intention to Create Legal Relations
You must both intend for it to be serious.
Social/Domestic: If you promise your mum you’ll do the dishes, that is usually not a contract.
Business/Commercial: If you promise a freelancer you’ll pay them, the court assumes you meant it seriously.
The “He Said, She Said” Trap
If verbal contracts are valid, why do lawyers hate them? Because they are hard to prove. If you go to court, the judge doesn’t know who is lying.
How to Prove It (Your Evidence List)
If someone rips you off on a verbal deal, you don’t need a signed document. You can build a “Jigsaw Puzzle” of evidence to prove the deal existed.
Text Messages & WhatsApp: Did they say “See you at 9am” or “Thanks for the work”? That proves an agreement existed.
Bank Statements: Did they pay you a deposit? A partial payment is huge proof that a contract was in place.
Witnesses: Was anyone else in the room?
Performance: Did you actually do the work? If you built a wall in their garden and they watched you do it, they can’t claim “I never asked for a wall.”
The “Confirming Email” Trick (Use This!)
To stop this happening in the future, use this simple trick. Immediately after a verbal agreement, send this email:
“Hi [Name], just confirming our chat. I’ll fix the fence this weekend for £200. Let me know if anything changes.”
If they reply “Great,” you now have a written contract. Even if they don’t reply, but let you start work, that email is powerful evidence.
Summary: Your Word is Your Bond
Don’t let people bully you with “there’s no paper.”
Remember:
Handshakes are legal.
Texts and emails count as proof.
If you did the work, you deserve the pay.
(Sources: Citizens Advice – Contracts, Gov.uk – Employment Contracts)
This guide is for information purposes only. While verbal contracts are binding, proving them can be risky. Always try to get agreements in writing. Consult a solicitor for high-value disputes.