An informal agreement, also known as an unwritten agreement, is a verbal or non-written agreement between two or more parties. It is a less formal way of sealing a deal or agreement, often done in a casual or personal setting. An informal agreement can be as binding as a written contract under certain conditions.
In an informal agreement, the terms and conditions of the agreement are not formally documented, but instead, they are discussed verbally or through email, text, or other informal means. The parties involved usually shake hands or verbally confirm their agreement, and it is assumed that each party understands the terms and conditions.
While an informal agreement may seem less official, it can have legal standing in some cases. However, in many cases, disputes can arise because the terms of the agreement were not documented adequately. For example, if a verbal agreement is made between two parties, and one party fails to fulfill their end of the agreement, it can be challenging to prove the terms of the agreement.
The enforceability of an informal agreement depends on the circumstances surrounding the agreement. If the parties involved had a clear understanding of the terms and conditions of the agreement, and they acted upon it, then it could be legally binding. However, it is always recommended to have a written agreement to avoid any misunderstandings or disputes in the future.
Another disadvantage of informal agreements is that they are harder to enforce in court. If the parties involved in the agreement cannot come to a resolution, it can be challenging to prove the terms and conditions of the agreement in court.
In conclusion, while informal agreements are less formal, they can be as binding as written agreements under certain conditions. However, it is always recommended to have a written agreement to avoid any misunderstandings or disputes in the future. If an informal agreement is made, it is essential to have a clear understanding of the terms and conditions and to act accordingly.