Can You Sue For Verbal Contract Breaches In Maryland?

Most business owners prefer written contracts. They’re clear. They’re documented. And let’s be honest, they’re a lot easier to enforce when things go sideways. But life doesn’t always work that way. Sometimes you shake hands on a deal, maybe over coffee or after a quick phone call, and the other party just doesn’t follow through. So what happens then? Can you actually sue someone for breaking a verbal agreement in Maryland?

Yes, you can. Verbal contracts are generally enforceable here. But proving what was agreed upon and showing that someone violated those terms? That’s where things get tricky in ways that written contracts simply don’t.

When Verbal Contracts Are Legally Binding

Maryland law treats oral agreements as valid contracts in most situations. A verbal contract needs the same basic elements as a written one:

• An offer from one party
• Acceptance by the other party
• Consideration, meaning something of value gets exchanged
• Mutual intent to be bound by what you’ve agreed to

The problem isn’t whether these contracts are legal. They are. The problem is proving they existed in the first place. When disputes pop up, it often turns into “he said, she said,” which makes litigation more complicated than anyone wants.

The Statute Of Frauds And Its Exceptions

Maryland’s Statute of Frauds throws a wrench into some verbal agreements. Certain contracts must be in writing, period. If your verbal agreement falls into one of these categories, you can’t enforce it without documentation:

• Sale of real estate or interests in land
• Agreements that can’t be completed within one year
• Promises to pay someone else’s debt
• Contracts for the sale of goods worth $500 or more
• Marriage agreements

Your handshake deal involves any of these? You’re probably out of luck. A Maryland litigation law firm can review what happened and tell you whether the Statute of Frauds applies to your situation.

Proving A Verbal Contract Existed

This is the hard part. You need to show that both parties agreed to specific terms. Not vague terms. Not “we discussed it.” Specific terms that a court can actually enforce. This is where many verbal contract cases completely fall apart.

What counts as strong evidence? Text messages or emails that reference the agreement help a lot. So do witnesses who actually heard the conversation. Partial performance matters too, which means actions showing both parties acted like the agreement was real. Payment records work. Invoices work. If you’ve done business together before, that prior history can support your claims.

We’ve seen cases where business owners thought they had rock-solid verbal agreements. Then they got to court and realized they couldn’t prove the terms. The other party claims different terms were discussed. Or worse, they deny the conversation ever happened at all.

Common Business Scenarios Involving Oral Agreements

Verbal contracts show up constantly in business relationships, particularly between parties who’ve worked together before. Service agreements start with a phone call instead of a proposal. Informal partnerships begin over lunch. Supplier arrangements operate on trust rather than paperwork.

Construction projects sometimes kick off with verbal commitments about scope and pricing before anyone drafts a formal contract. Employment terms get discussed verbally before written offers arrive. Vendor relationships may run on handshake deals for months, even years.

These arrangements work fine until they don’t. When one party fails to perform, the other is left scrambling to prove what was actually agreed upon, and that’s rarely a fun position to be in.

What Damages Can You Recover?

Let’s say you successfully prove a verbal contract breach. What can you actually get? Maryland law allows you to recover damages that put you in the position you would’ve been in had the contract been fulfilled. This typically means:

• Direct financial losses from the breach
• Costs you incurred because you relied on the agreement
• Lost profits, but only if you can prove them with reasonable certainty

Punitive damages are rare in contract cases. You generally can’t recover for emotional distress unless the breach involved particularly egregious conduct, and courts set a high bar for that.

The Litigation Process For Verbal Contract Disputes

Pursuing a verbal contract claim requires serious preparation. At Brown Kiely LLP, we start by gathering every single piece of evidence that supports your version of the agreement. This means documenting your communications, tracking down witnesses, and establishing a clear timeline of what happened and when.

The discovery process becomes especially important in these cases. Depositions let us question the other party under oath about the agreement’s terms. We can subpoena documents and communications that might support what you’re claiming happened.

Many verbal contract disputes settle before trial. Both parties recognize the uncertainty of litigation and decide it’s not worth the risk. If a settlement isn’t possible, we prepare to present your case to a judge or jury, knowing that the outcome depends heavily on the quality of evidence we’ve gathered.

Protecting Yourself Going Forward

The best approach? Avoid verbal contract disputes altogether. Get agreements in writing, even if they’re just simple email confirmations of what you discussed. A quick message that says “just confirming we agreed to X, Y, and Z” can save you thousands in legal fees down the road. Document changes to existing arrangements. Keep records of all business communications, no matter how informal they seem at the time.

When written contracts aren’t practical for every interaction, and sometimes they’re not, follow up verbal discussions with an email summarizing the terms. This creates a record that can support your position if disputes arise later. It doesn’t have to be formal or lengthy. It just has to exist.

If you’re facing a potential breach of a verbal agreement or need guidance on enforcing an oral contract, our team can evaluate your situation and explain your options. Understanding your rights under Maryland contract law helps you make informed decisions about whether litigation makes sense for your circumstances.