If two or more parties reach an agreement without written documents, they will enter into an oral agreement (formally known as an oral contract). However, the authority of these oral agreements can be a bit of a grey area for those who do not know the law of contracts. The parties, both reasonable, should freely approve the terms of the agreement, i.e. without influence, coercion, coercion or misreprescing of facts. The nephew and aunt accept the terms of the contract without putting pressure on each other and with the intention of fulfilling their obligations. Just like the aunt in our imaginary scenario, you`re probably better off documenting a written agreement. Something as simple as a promised note, detailing the nephew`s promise to repay his aunt, could have avoided any quarrel over their agreement. Finally, it is less difficult to ask family members for a written loan than to bring them to justice. “The agreement is legally binding. Basta ako kung ano sinabi ni Presidente,” he added.
Dear PAO, my friend and I had a verbal agreement for the renovation of his home in Mandaluyong City. We decided that I would cover all the costs and all the materials of the construction, so my friend will only reimburse me for the renovation costs. It seemed to me to escape after I told him that the project was already finished and that the cost was P124,000.00. Can I collect it, even if I don`t have a written agreement to support my claims? John Dear John, you can collect from your friend, even if there is no written agreement to support your request. A contract was perfected from the moment you agreed to renovate his house. Under Article 1305 of the Civil Code of the Philippines, a contract is a meeting of minds between two people, in which one undertakes, in relation to the other, to give something or to provide a service. Although Foreign Minister Teodoro Locsin Jr. made it clear that the oral agreement was not a policy and therefore could not be implemented, his speech at SONA would be confirmed. To win the case, the aunt must prove with evidence that her nephew lent the money with the intention of repaying it, while the nephew must prove that he did not accept. Without the documentation of the agreement, it will be a matter of er-she-said. In the end, it is a judge who decides which case is most likely of the party. Panelos` statements came after at least two cabinet officials said the agreement was not a national policy.
Here too, a written appearance or any form of documentation is not part of a valid contract. As long as an agreement meets the three elements mentioned above, there is a valid contract, whether or not it is a written agreement.