The Cost of An Oral Agreement

An oral agreement is most known as a verbal agreement. Two parties agree on a transaction or exchange for which both parties benefit. The bible says godly men and women are to keep their word. Don’t make false promises or swear but let your yes be yes and your no be no (James 5:12 ESV). If you make an agreement then fill the agreement. If one party can not complete the terms of the agreement a discussion is needed to see if both parties can come to another agreement.

God also calls for us to write down the agreement. Malachi 3:16 NIV Then those who feared the LORD talked with each other, and the LORD listened and heard. A scroll of remembrance was written in his presence concerning those who feared the LORD and honored his name.

Habakkuk 2:2 Then the LORD replied: “Write down the revelation and make it plain on tablets so that a herald may run with it.

The verbal agreement should be placed in writing to avoid confusion later. If there is a change it is good for both parties to review the written agreement to adjust the agreement to a place that benefits both parties. The written agreement does not mean you don’t trust the other person. A written agreement is for peace of mind between both parties. You love people when you write an agreement.

Most business owners began with verbal agreements. I must say, the problem with oral agreements is often times people forget the agreement or people change. Psalm 41:9 Even my close friend in whom I trusted, Who ate my bread, Has lifted up his heel against me.

3 Steps to Agreement

1.  The agreement can be simple and signed between two parties. No legal process is regarded when both parties can agree. The agreements normally include service agreements, payment policies, employee agreement, contractor agreements, and other business agreements. Agreements should be updated over time.

You can have the agreement drafted and reviewed by a lawyer to determine if the agreement will stand in court if needed. You can also use software with contracts ready prepared and reviewed by lawyers.  This will save you time and money.

2.  An agreement can involve a notary to verify the parties are who they say they are before a witness. (Mostly for people who are not familiar with each other.) Normally the document itself will request a notary signature. Commonly used in loans.

3.  Avoid people who say “I don’t need an agreement, don’t you trust me.” Yes, I trust you but I also trust in what God says and how we forget. Write it down and make the agreement. If this person refuses this is an indication this person has something to hide.

Agreements save time and money down the road to protect us from unscrupulous individuals. I have encountered a number of instances where the person pretends they do not understand the payment policies or terms of services. The agreement has stated clearly what is involved when these individuals try to demand more than the agreed upon services or their money back.

Agreements also give you a foundation. Foundation is needed to set employee payment agreements and work hours as well as payment policies for collections. Agreements take time up front but save you thousands of dollars on the backend.  Remember, where two or more agree on earth and ask in Jesus name it will be done for them.  Think about that during businesses meetings between partners and get the signatures.

Matthew 18:19
Verse (Click for Chapter)
New International Version
“Again, truly I tell you that if two of you on earth agree about anything they ask for, it will be done for them by my Father in heaven.
Bible Hub Online: http://biblehub.com/matthew/18-19.htm

Y. Michelle Coard, B.A.S, A.A.S, Accountant and Profit Strategist.

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