60 Seconds with an Attorney: Todd Elenz

Todd ElenzOnly written contracts are binding, right?

No, many types of agreements (or contracts) are binding even if they are not written. Generally, the only types of contracts that must be in writing are:

  • Agreements that, by their terms, will not be performed within one year
  • Agreements to pay or guarantee another person's debt
  • Promises made in consideration of marriage
  • Contracts for the sale of goods (tangible, movable property, such as a computer or furniture) for $500 or more
  • Leases of goods for $1,000 or more
  • Contracts to buy/sell any interest in real estate
  • Leases of real estate for a period longer than one year

However, verbal contracts are difficult and costly to prove in court, so the safe practice is to create a written contract. Also, parties to a verbal contract rarely, or never, agree to all the terms. In this event, the laws of Colorado and the court will "fill in" the missing terms. This can lead to unexpected results. Do not hesitate to call our office if you have a question related to a contract. No agreement is too large or small to have an attorney assist with the negotiations or document drafting or editing.