A parol contract is a type of agreement that is made verbally or informally through conversations, emails, or text messages. It is a contract that is not written, and as a result, it can be difficult to prove its existence, terms, and conditions. However, despite being informal, a parol contract is enforceable under certain circumstances.
In general, a parol contract is enforceable if it meets the following criteria:
1. There must be a valid offer and acceptance: For a parol contract to be enforceable, there must be an offer made by one party and accepted by the other party. The terms of the offer and acceptance must be clear, unambiguous, and agreed upon by both parties.
2. There must be consideration: Consideration refers to something of value that is exchanged between the parties. It can be money, goods, services, or anything that the parties agree upon. Consideration is necessary to make a contract legally binding.
3. The contract must not be illegal: A parol contract is only enforceable if it is legal and does not violate any laws or public policy. For example, a contract to commit a crime is not enforceable.
4. The contract must not be subject to the statute of frauds: The statute of frauds requires that certain contracts be in writing to be enforceable. In general, contracts for the sale of goods over a certain value, contracts for the sale of land, and contracts that cannot be performed within one year must be in writing to be enforceable. If a parol contract falls under one of these categories, it may not be enforceable.
If a parol contract meets these criteria, it is generally enforceable in a court of law. However, proving the existence and terms of a parol contract can be difficult. Without a written contract, there may be disputes over the terms of the agreement, and it may be challenging to prove what was said or agreed upon.
In summary, a parol contract is enforceable for as long as it meets the criteria above. It is important to note that while parol contracts can be enforceable, they are generally less reliable than written contracts. It is always advisable to have a written contract to avoid any disputes or misunderstandings down the road. If a parol contract is necessary, it is essential to ensure that the terms are clear, agreed upon, and legally binding.