You Might Be Thinking…

“The law doesn’t say everything has to be in writing. So why complicate things with paperwork?”

You’re right – for movable property, the law does allow oral contracts. But in practice, if a dispute arises, it’s very difficult to prove exactly what was agreed. And in some situations, an oral deal simply won’t work because other regulations require a written document.

Clients Often Ask Me…

• Is an oral purchase agreement valid?

• When is a written form mandatory?

• What are the risks of an oral deal?

• Can I win in court with only witnesses?

• Why do lawyers recommend written contracts even for “simple” deals?

Oral Purchase Agreements in a Nutshell

• Validity – a purchase agreement is concluded once the parties agree on the essentials (subject + price). This can be done orally.

• Movable property – e.g., buying electronics or furniture can be agreed verbally.

• Real estate – here, written form is mandatory; otherwise, the contract is absolutely void.

• Cars – although a car can be purchased orally, for the transfer in the vehicle register you must have a written agreement or another proof of acquisition. Without it, the car cannot be re-registered.

• Risks – in disputes, it’s nearly impossible to prove the details of the agreement without written evidence.

Advantages and Disadvantages of Oral Agreements

Advantages

✔ speed and simplicity
✔ no costs for drafting
✔ practical for small everyday purchases

Disadvantages

❌ difficult to prove in court (witnesses ≠ certainty)
❌ disputes about what exactly was agreed
❌ risk of invalidity where written form is required
❌ harder to enforce claims for defects
❌ for certain assets (e.g., cars) re-registration is impossible without a written agreement

Risks and Common Mistakes

• Buying a car “on a handshake” – the client orally agreed with the seller, but without a written contract the car could not be re-registered, so it legally remained in the seller’s name.

• Price agreed “approximately” – the price wasn’t clearly set, and the court declared the contract invalid.

• Selling electronics to a friend – without written provisions on defects, it was impossible to claim a discount later.

Lawyer’s Recommendation

• For valuable movables (cars, machinery, electronics), always insist on a written contract.

• For real estate, a written form is mandatory by law.

• Oral agreements are only safe for minor, everyday transactions.

• Even a simple written contract or email correspondence can save you in a dispute.

Checklist: Never Rely on an Oral Agreement For

✔ buying a car (due to registration)
✔ buying real estate (mandatory)
✔ buying machinery or technology
✔ purchases with deferred payment

FAQ

Is an oral purchase agreement valid?
Yes, but only for movables and if the essentials (subject and price) are agreed.

When is written form mandatory?
Especially for transfers of real estate, cooperative shares, or agreements requiring land register entries.

Does an oral car purchase contract work?
Yes, but in practice it’s useless – for transfer in the vehicle register you must have a written agreement.

How do I prove an oral contract in court?
Witness testimony is possible, but it carries a high risk of failure.