Mondelinge overeenkomst
Oral agreement
An oral agreement is a contract concluded through the oral mutual assent of the parties, without any written record. In the Netherlands, such an agreement is in principle legally valid, unless the law requires a written form.
An oral agreement is formed when the parties orally express their mutual assent as to the essential terms of a contract, such as in the sale of movable property or a contract for services. This type of agreement is founded on the principle of freedom of contract and Article 3:37 of the Dutch Civil Code.
Under Dutch law, an oral agreement carries the same binding force as a written agreement, unless a mandatory statutory provision requires a written instrument, as is the case with the transfer of immovable property or certain consumer contracts.
In practice, establishing the existence and terms of an oral agreement can prove problematic in the event of a dispute, given the absence of any recorded document. The parties must then frequently rely on witness testimony, correspondence or conduct to demonstrate both the existence and the content of the agreement.
“The contractor and the client entered into an oral agreement concerning the renovation works, whereby the price and the completion date were agreed orally.”
Related terms
Need legal advice?
Schedule a free consultation with one of our specialists