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The dubious effectiveness of verbal contracts during employment

Employees as well as employers can benefit from a contract that outlines what is expected on the job. At Neaton & Puklich, P.L.L.P., we are frequently asked about the effectiveness of different types of employment contracts. With most companies in Minneapolis, signing an employment contract is typical upon hiring. However, there are some instances when you might feel that you don't need a contract. Agreeing to work solely by verbal agreement is known as an oral or verbal contract.

You might be surprised to learn that verbal contracts may be enforceable in court. As an example, you might need some work done around your home and decide to hire a handyman friend instead of a contractor. Although the person doing the work is your friend, it would still count as an employment situation. In a casual setting like this one, you might feel more comfortable trusting the word of others instead of getting the terms of your agreement in writing.

However, verbal contracts are not necessarily in your best interests. If, for example, your friend fails to complete the job as requested or demands more payment than you had initially agreed upon, you could find yourself trying to explain your side to a judge. Verbal contracts are often difficult to prove. Therefore, it is usually a smart move for employers and employees alike to sign a contract, no matter how big or small the job. This may help prevent disputes in the future. Learn more about contracts between employers and staff by visiting our page.

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