Indiana Law on Verbal Agreements

Indiana Law on Verbal Agreements: Understanding Your Rights

In Indiana, like in most states, verbal agreements are considered legally binding contracts. However, they can be difficult to enforce as they lack written documentation. This ambiguity often leads to disputes between parties, especially when it comes to complex transactions.

If you’re involved in a verbal agreement in Indiana, it’s important to understand your rights and responsibilities under the law. Here are some key points to keep in mind:

What Makes a Verbal Agreement Legally Binding?

A verbal agreement becomes legally binding when both parties have mutually agreed to the terms and conditions of the agreement. This is not limited to personal or informal agreements, as verbal agreements can still be considered binding in business transactions.

Additionally, verbal agreements do not have to be witnessed or notarized to be legally binding. In some cases, verbal agreements can even supersede written contracts if they were made later and contain more specific terms.

Challenges of Verbal Agreements

Whereas written contracts can be used as evidence in court, verbal agreements can be difficult to prove. This is why it is essential to have a good memory or evidence such as emails, text messages, or witnesses during the negotiation process or shortly thereafter. Verbal agreements can also be difficult to enforce due to lack of clarity or when it comes to major financial or legal transactions.

Furthermore, if one party fails to fulfill their obligations under the verbal agreement, it can be challenging to take legal action without sufficient evidence. This is why it is always advisable to put everything in writing including the terms and conditions, payment schedules, etc.

Enforcing Verbal Agreements in Indiana

If you successfully prove that a verbal agreement existed and was breached, you will be able to file a lawsuit in Indiana to recover damages. The Indiana statute of limitations requires that you initiate legal action within six years of the date that you breached the agreement.

However, it`s important to note that the state of Indiana requires some types of contracts to be in writing, such as contracts for the sale of land, a lease exceeding three years, and contracts that cannot be performed within one year. In such cases, verbal agreements are not legally binding.

Getting Legal Help

If you need legal help regarding a verbal agreement in Indiana, it`s advisable to seek counsel from a competent legal professional. An experienced lawyer can help you understand your rights and options for legal recourse if a verbal agreement is breached. Lawyers can also help you draft contracts that will ensure that your rights and interests are protected.


Verbal agreements may seem simple and convenient, but they can be complex and challenging to enforce. However, understanding your rights and responsibilities under Indiana law can help you navigate verbal agreements with greater confidence. If you have any doubts, it`s always advisable to seek legal advice to avoid potential disputes and protect your interests.