In Germany, a verbal agreement can indeed be legally binding. German contract law, as outlined in the Bürgerliches Gesetzbuch (BGB), recognizes both written and oral agreements as legally enforceable under certain conditions. According to Sections 145 to 157 of the BGB, a contract can be formed through a verbal agreement as long as it meets the essential elements of a contract. These elements include a clear offer and acceptance, an intention to create legal relations, and consideration in the form of a service, product, or payment.
However, not all agreements can be concluded verbally. Certain types of contracts must be in writing to be legally binding. For instance, contracts involving the sale or transfer of real property must be notarized in writing according to Section 311b of the BGB. Similarly, a guarantee agreement must be in written form to be valid, as stipulated in Section 766 of the BGB. Consumer loan agreements also require a written format under Section 492 of the BGB.
While verbal agreements are binding, they can present significant challenges when it comes to enforcement. The burden of proof rests on the party claiming that a contract was formed, and without written evidence, it may be difficult to establish the exact terms of the agreement. Disputes often arise over differing interpretations of what was said, complicating the enforcement of verbal agreements.
Culturally, Germans tend to prefer written documentation even when a verbal agreement is legally valid. This preference is rooted in a desire to maintain clarity and avoid misunderstandings, particularly in business contexts where detailed and precise agreements are the norm. While the law may uphold verbal agreements, in practice, written contracts remain the standard for most transactions, ensuring that all terms are clearly defined and easily enforceable.