South Dakota Verbal Agreement Law: Understanding Your Rights
In South Dakota, verbal agreements are legally binding contracts. Even though they are not in writing, they still carry the same weight as written contracts, and parties involved are obligated to perform their obligations. However, enforcing verbal agreements can be challenging, especially if the parties disagree on the terms.
Here are some important things to know about South Dakota verbal agreement law:
1. Verbal agreements are enforceable.
Contrary to popular belief, verbal agreements are enforceable in South Dakota. However, they need to meet certain criteria to be legally binding. They must have an offer, acceptance, and consideration. Additionally, the terms of the agreement must be certain and definite.
2. Limitation period for verbal contracts.
In South Dakota, the statute of limitations for verbal contracts is three years. This means that parties have three years from the date of the agreement to bring a lawsuit to enforce it.
3. Difficulties in proving verbal agreements.
One of the challenges of enforcing a verbal agreement is proving its existence and terms. Unlike a written contract, there may be no physical evidence to support its existence. However, verbal agreements can be proven through witness testimonies, emails, text messages or other forms of communication.
4. Exceptions to verbal agreement enforceability.
There are certain situations where verbal agreements are not enforceable in South Dakota. For example, the Statute of Frauds requires that certain contracts be in writing. These include real estate contracts, contracts that cannot be performed within one year, contracts for the sale of goods over $500, and contracts for the sale of securities. Additionally, verbal agreements that are illegal or against public policy are also unenforceable.
5. The importance of written contracts.
While verbal agreements are enforceable in South Dakota, it is still recommended to have a written contract. Written contracts provide a clearer outline of the terms of the agreement, reducing misunderstandings and potential disputes. It also provides solid evidence that the agreement existed and was agreed upon.
As a final note, if you are entering into a verbal agreement in South Dakota, it is advisable to seek legal advice. An attorney can help you understand your rights and obligations and ensure that the agreement meets all legal requirements.
In conclusion, verbal agreements are legally binding in South Dakota, with certain exceptions. Although they are enforceable, they can be challenging to prove. It is important to have a clear understanding of the terms and to seek legal advice, especially if the agreement involves significant obligations. And while verbal agreements are legal, written contracts provide additional protection and clarity.