Can my business enforce a verbal deal with a supplier?

• Offer and acceptance: Both sides clearly agreed.
• Consideration: Something of value was exchanged (like goods for payment).
• Clarity: The terms were specific enough to form a contract.

The main hurdle is the Statute of Frauds. In most states, contracts for goods over a certain amount (usually around $500) must be in writing to be enforced. However, service contracts are sometimes enforceable even above that amount, unless they fall under a state’s general Statute of Frauds—for example, if the contract can’t be completed within one year.

Even if your handshake deal isn’t enforceable as a full contract, you may still have options. If you reasonably relied on the supplier’s promise and suffered a loss because of it, you might be able to bring a claim for promissory estoppel or reliance damages.

To strengthen your case, gather all possible proof—emails, texts, invoices, or delivery records. Courts sometimes enforce verbal agreements, but written contracts are far easier to prove and protect your business in the long run.

What to consider in your specific situation

Factors that may affect your case include:

• The dollar amount and whether it triggers the Statute of Frauds.
• Your state’s rules and exceptions for verbal contracts.
• Evidence like emails, payments, or delivery records.
• Whether the supplier admitted to the agreement.
• The impact on your business if the deal falls through.

Because every case is different, you can use Rocket Copilot to get more information about your situation or request a Legal Pro review.