Oral agreements are generally valid and legally binding as long as they are reasonable, equitable, conscionable, and made in good faith.
A couple of years ago, I was lucky enough to be able to participate in Noam Wasserman’s Founders Bootcamp. The story he told about the oral agreement between the founders of Zipcar made a huge impression on me.
On this week’s Tech School episode I shared some of that story as an example of an oral agreement. Watch the episode to hear the story in my talk about legal basics for startup founders.
If you’re curious to know more about the Zipcar story, you can read Noam’s Harvard Business Review article (co-authored with Thomas Hellmann).