Verbal Agreements in Ontario: Are They Legally Binding?

When deals fall apart, people often wonder if verbal promises have legal weight. 

The answer is maybe: verbal agreements can be legally binding in Ontario. But proving what was actually agreed and enforcing those promises in court is far more difficult than most people realize.

Certain agreements must be in writing, even if everyone agrees verbally, such as:

• Real estate transactions – buying, selling, or leasing property
• Guarantees – promising to pay someone else’s debt
• Consumer protection contracts requiring specific disclosures

While verbal agreements can be binding, proving they existed and what terms were agreed creates massive challenges.

The fundamental issue:

• No objective record of what was said
• Memories differ and fade over time
• Each party may have genuinely understood terms differently
• It becomes a credibility contest of who the judge believes

You need evidence beyond just your word. Courts look for multiple types of proof that together demonstrate an agreement existed.

Even though the agreement was verbal, related written communications help prove it:

Text messages or emails discussing the deal.

Written summaries you sent after verbal conversations. If the other party didn’t object to your summary, this strengthens your case.

Notes you made at the time documenting the conversation, date, and who was present.

Payment records like e-transfers or cheques showing money exchanged consistent with the agreement.

Invoices or receipts created based on the verbal deal.

People present when the agreement was made who can testify about what was said.

Friends or colleagues told about it shortly after, before any dispute arose.

Business associates informed about the agreement as part of normal business operations.

What you did in reliance on the agreement shows you both believed it existed.

Partial performance where one or both parties started fulfilling the agreement before the dispute.

Document everything immediately:

• Write down your recollection while memory is fresh
• Include dates, locations, who was present, and exact statements
• Gather all texts, emails, and related documents

Identify witnesses who know about the agreement and would testify.

Collect proof of performance like payments made, work completed, or expenses incurred.

Consult a lawyer to assess whether your evidence is strong enough to justify pursuing the claim.

Facing a verbal agreement dispute? Our civil litigation lawyers help clients prove or defend against verbal contract claims and negotiate settlements. Contact us for a confidential consultation at 416.901.9984 or info@pintoshekib.ca.