verbal commitment
Definition
A verbal commitment is a spoken promise or agreement between two parties that has not been written down or signed. Courts sometimes treat these as legally binding contracts, but proving what was actually said can be extremely difficult without witnesses or recordings.
Example
A supplier calls you and promises to deliver 500 units at a set price by Friday, and you agree over the phone without following up with an email confirmation.
Watch Out
Always follow up any spoken agreement with a written confirmation, because if a dispute arises, a verbal commitment becomes a "he said, she said" situation that is very hard to win in court.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.