Verbal contracts

[Solitaire Events Ltd]

If someone has agreed to book your services over the phone and you then send paperwork, contract and T&Cs, does the initial verbal contract exist and count if someone decides to cancel you without having signed and sent the written contract back?

I've had this situation come up recently and have been reading about it, but people seem to have different views and experiences of it.

[Spirits High]

Funny you should mention it.

That's pretty much how that joint 40th booking went the other day.

Agreed to book over the phone , sent an email through my site say ing please book us for that day then when they read the T&C's apparently they were too "Extreme"

They booked alernate entertainment so would no longer be needing our services.

Wasn't sure how to pursue it. I think that "yes" they had entered into a contract but it would prove hard to enforce it.

I just wished them the best of luck for their party (they'll need it ) and moved on. They did say they were sending the booking forms back but they've yet to arrive.

[CRAZY K]

If someone has agreed to book your services over the phone and you then send paperwork, contract and T&Cs, does the initial verbal contract exist and count if someone decides to cancel you without having signed and sent the written contract back?

I've had this situation come up recently and have been reading about it, but people seem to have different views and experiences of it.

I would say offer and acceptance required under Contract Law is not fully complete until they have accepted your T and Cs which I presume are enclosed for acceptance/ signing with your email or letter.

They cant accept them until they read them --if they are on your website they still may claim not to have read them unless you get them to email to that effect--whats the legal effect of emails--thats another problem.

If they sign saying they have read them thats it.

If you dont use T and Cs I suppose it could be argued they accepted your verbal offer. i.e Verbally -- Our Disco costs £400--ok ill book it.

I wouldnt threaten anyone unless I had a signed Contract on my file--

That reminds me--some idiot hasnt sent back a signed Contract for 2 weeks time==time to put the boot in

Thats my take--

My golden rule is always work on written documents and chase up outstanding Contracts/fees ( unless your in China of course ) in 14 days.

If you have someone wanting a date thats been booked already but documentation is outstanding I issue a warning that if I dont get the outstanding paperwork next day I will take the alternative booking and blow them out.

Its a tough old business--as you know Darren,

CRAZY K

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Hi Darren

Verbal contracts are legally binding, as even with a verbal contract there are still the three key elements that form a contract. Offer, Consideration and Acceptance.

Our booking system is done on verbal agreements and our contracts are issued as 'written confirmatin of a verbal agreement already made'. (Although, we do now get all the information we need to issue a contract on a confirmation email which asks them to look at our TOB and reply with all the bits we need to issue).

Contract clause:-
This contract confirms the verbal contract already made between artiste and promoter. it is binding and does not provide for cancellation.

Our contracts and TOB have been DTI approved and were drawn up in consultation with them.

I know of an act that successfully sued an agent on the strength of a verbal contract.

The agent called and booked the musician for Xmas day in the morning following a call from the end client, he was about to issue paperwork on it and the booking fell out of bed (in the afternoon). The agent called him to tell him that the job was not going ahead and the musician sued him on the strength of his verbal contract (even though he didn't get any other offers of work in the 4-5hrs between the 1st and 2nd call).

You can always reinforce the verbal agreement in your contracts that you send to clients (get this checked out before use), by using something similar to the text below.

You are requested to sign and return this contract within the next 7 days. Failure to sign and return this contract is not sufficient to cancel the agreement......

Hope that helps....

[Pe7e]

I've had this situation come up recently and have been reading about it, but people seem to have different views and experiences of it.

A verbal contract has the same legal validity as a written one, but the problem is in enforcing it. Without independent witnesses it would be near impossible to prove what was agreed to, and by who. Personally I don't consider a booking is confirmed until I get the deposit and signed contract, and I make this clear when a telephone booking comes in, although I do allow time for this to happen. Additionally I have a £25 non refundable 'booking fee payment link' set up on my website which I invite any telephone Booker's to make use of, to secure their chosen date.

[TonyB]

Under the law of contract, a verbal contract is binding i.e. if you make an offer of service and it is accepted then the contract is binding.

At the time the contract is made, the other party must agree to the terms and conditions of the contract.

If you then send a contract and ask for a signature on it, then the contract is not binding until such time as a signed contract is received (that then becomes a term and condition of the contract being binding).

If you just send a contract confirming what was a agreed and don't ask for a signature, then the contract is binding from the time it was agreed verbally.

Under the distant selling regulations, the other party have a minimum 7 day cooling off period.

Problem with a "verbal" contract is if it went to court, proving what was said. Unless the conversation was recorded, then it is your word against theirs.

[Excalibur]

Well I was going to do the famous quote " A verbal contract's not worth the paper it's written on " , but it appears one may be more binding than I had supposed.

[Pe7e]

Under the distant selling regulations, the other party have a minimum 7 day cooling off period.

I would think the same 7 day cooling off period exists even after a contract has been signed, although I've never put it to the test. Recently a forum member (possibly another forum) successfully canceled a yellow pages contract for advertising he had taken out.

Problem with a "verbal" contract is if it went to court, proving what was said. Unless the conversation was recorded, then it is your word against theirs.

You would also need to prove it was actually them, not someone impersonating them.

[rob1963]

Problem with a "verbal" contract is if it went to court, proving what was said. Unless the conversation was recorded, then it is your word against theirs.

My thoughts exactly.

That's why I think verbal contracts are a complete no go.

You would also need to prove it was actually them, not someone impersonating them.

Which is even harder to prove than the details of what was said in the first place.

[Solitaire Events Ltd]

The annoying thing is, I phoned the venue, which is one of my regulars to see if the function had been cancelled and it hasn't.

The client told me "there was a problem with dates"

More like "there was a cheaper company"

Oh well, thanks for the information - this has only happened a couple of times since I've been trading and the last time was years and years ago.