When it comes to purchasing shares of a company, there are many different factors that come into play. One of the most important is whether or not a verbal agreement to purchase shares is binding.
The short answer is yes, a verbal agreement to purchase shares can be binding. However, there are a few key things to keep in mind.
First, it`s important to understand that verbal agreements are not always enforceable. In order for a verbal agreement to be binding, there must be evidence that both parties intended to be bound by the agreement and that the terms of the agreement were clear and specific.
In the case of a verbal agreement to purchase shares, this might mean that there was a clear agreement as to the number of shares being purchased, the price per share, and any other important terms of the sale.
It`s also important to note that in many cases, a written agreement is a safer and more reliable way to ensure that a share purchase is binding. A written agreement can help to clarify the terms of the sale and provide evidence of both parties` intent to be bound by the agreement.
That being said, if a verbal agreement to purchase shares does meet the necessary criteria to be binding, it can be enforced in court. This means that if one party fails to fulfill their obligations under the agreement, the other party may be able to seek legal recourse in order to enforce the terms of the sale.
In conclusion, while a verbal agreement to purchase shares can be binding, it`s important to ensure that the agreement meets certain criteria in order to be enforceable. When possible, it`s always best to have a written agreement in place to ensure that all parties are on the same page and that the terms of the sale are clear and specific.