Backdating contracts verbal contracts and contract splitting are considered to

by  |  02-Sep-2019 07:02

For a verbal agreement to be binding, you and the client simply need to agree on two things: Of course, certain types of agreements must be made into a written contract or neither party can be legally held to them.

backdating contracts verbal contracts and contract splitting are considered to-19

Now, neither of these folks will pay up or return your phone calls.

Are you just out of luck because you didn’t have a contract? An agreement is an agreement, and many verbal agreements are legally binding.

Additionally, where the backdating of an agreement affects the taxes that are imposed (or not imposed) on one of the contracting parties, courts will generally only respect the backdating provisions as between the contracting parties.

A court will generally not enforce the backdating provisions as between a taxpayer and the applicable tax enforcement agency (such as the Canada Revenue Agency).

This article will examine the circumstances under which a verbal agreement is legally binding and the options available to help you collect from a client when you don’t have a written contract.

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