Every day we enter into many contracts without even realizing it. Indeed, a contract exists as soon as two persons (a company is considered a legal person), commit to do something for each other. A contract is formed by the mere exchange of consent.

For example, buying food from your grocer is a contract, as he agrees to provide you with food in exchange for payment. The snow remover agrees to clean your driveway upon payment for his service. The same goes with renting a parking space, going to the movies, providing daycare for your children, selling a car, …

When a contract is concluded, the contracting parties have the obligation to respect their commitments, failing which there are remedies: you can put the person on notice to perform their obligation, demand compensation, ask for a reduction of your own obligation, terminate the contract, …

The contract does not have to be recorded in a document, it can be verbal. Therefore, a verbal contract is legally valid and has the same legal effects as a written contract.

The problem with a verbal contract is that its existence is more difficult to prove should a dispute arise. The proof will have to be made by a witness and the result is often that it will be the word of one against the other and about who the court will believe. A written contract is much better evidence.

Obviously, some contracts are more complex than others, so we recommend that you consult a lawyer to put your agreements and contracts in writing.