Verbal contracts seem like a tricky part of the legal processes. There are several ways to ensure that verbal agreements are kept, though it may be difficult. There can be witnesses present at the initiation of the verbal agreement. This can help in if a party decides to go back on its part of the verbal agreement, witnesses can help in being an unbiased source of truth, always ready to state the original verbal agreement. Verbal agreements should be made with clear parameters and periodic check ins on the clarity of the verbal agreement. Additionally, both parties can provide proof of keeping the verbal agreement periodically. This can ensure trustworthiness and can strengthen the relationship between the two parties. This could change the mind of someone who is thinking about breaking the verbal agreement, thinking that it is easier because it is not written.
Sometimes with verbal contracts, they usually fail to explain the little details within the big picture which is why written contracts are more ideal and less risky. However, one method of making verbal contracts better is sending following emails that explain the big picture or to highlight points that were not previously mentioned. That way, no detail is forgotten and everything is brought to attention. if no follow emails or anything of the sort were to happen, there is a risk that important details may not be addressed leading to potential legal issues. Therefore, if you were to ensure that verbal contracts are followed, you must send follow up emails, preferably right after, to ensure that no detail is missed and the end user is aware of everything being addressed.
Verbal contracts are difficult to keep track of because if one person decides that they do not want to follow through with the contract they are not technically legally required to because there is no proof. I agree with what was mentioned about having proof because without any proof then the verbal contract is simply based on a sense of trust between the parties because they do not feel the need to have a contract because they believe there to be a good partnership. In some cases, this may work out better because legality of drafting up a contract may be an extra hassle but also could bring up issues where the deal does not seem as useful, so a verbal agreement is a lot faster and simpler deal. However, if there is no person that is a witness or no audio recording of what was mentioned, then if there are issues you are more likely to have to suffer the consequences without aid because there is no tangible form to provide you back up. I personally do not see any benefit in having a verbal contract because it could lead to a lot of issues in the future, so just having an informal contract is better than nothing.
In the medical device industry, written contracts are the standard because they protect all parties, clarify responsibilities, and support compliance with FDA and ISO requirements. Still, verbal agreements do happen, especially during early negotiations or quick operational decisions. Since verbal commitments can be risky without documentation, companies rely on several strategies to ensure they are followed.
First, verbal agreements are usually followed immediately by a written confirmation—such as an email recap, meeting minutes, or a change-control note—so there is a traceable record of what was agreed on. This acts as a “paper trail” even if the original conversation wasn’t formalized. Second, many organizations use standardized communication protocols: project managers document action items after every meeting, quality teams log decisions in their QMS, and legal or regulatory staff review these records to ensure alignment with the official contract. Finally, clear communication is key. Teams are encouraged to restate expectations verbally and in writing to prevent misunderstandings, especially in regulated environments where ambiguity can lead to compliance issues.
Overall, while verbal agreements may occur, the industry depends on strong documentation practices to reinforce them and maintain regulatory compliance.
