Economou & Co LLC has published a new guide examining whether verbal contracts are legally binding in Cyprus and the practical issues that arise where parties proceed without a written agreement.

Under Cyprus law, a contract does not generally need to be in writing to be legally binding. A verbal contract may be valid and enforceable, subject to certain statutory exceptions. In practice, however, the principal difficulty is often evidential: the party relying on an oral agreement must establish both that an agreement was concluded and what its terms were.

The guide considers the general requirements for binding contracts under the Contracts Law, Cap. 149, the circumstances in which writing is required, and the evidence that may assist in proving an oral agreement, including communications, invoices, payments and the parties’ conduct.

It also examines the remedies that may be available where a verbal contract is breached and the potential basis for recovery where no enforceable contractual obligation can be established, including restitution based on the principles of unjust enrichment.

Read the full guide: Verbal Contracts in Cyprus: Are They Legally Binding?