How to Enforce a Verbal Contract in Colorado

Most people believe that because it’s not in writing, there is nothing they can do. That is false.  You can enforce oral agreements if you have the evidence to prove the terms were agreed upon.

This article explains how verbal contracts are formed, proven, and enforced under Colorado law, and how an attorney can help.

• Verbal agreements can be enforceable contracts in Colorado

• Evidence such as emails, texts, pictures and payment records can be used to establish the scope and terms of a verbal agreement.

• Verbal contracts are harder to prove than written ones, but far from impossible. 

• You may have as little as two years to file a lawsuit, so acting quickly matters. 

• Even without a written contract, legal theories like unjust enrichment and promissory estoppel can protect you. 

• Contact a contract attorney as soon as possible to understand your legal options.

Many people don’t realize that, under the right conditions, a verbal contract can be as legally valid as a written one. While written contracts can be preferred by courts and recommended by attorneys like me, especially for your financial and business interests, state law offers numerous legal options. You need to be able to demonstrate that:

1. An agreement was made

2. You fulfilled your obligations (you paid)

3. The other party failed to fulfill their end of the agreement (did not provide services)

Verbal contract disputes are incredibly common in the home service and construction industries. We regularly see cases involving:

• Remodeling contractors who walk off the job without completing the project or deliver subpar work

• Remediation specialists who fail to finish the project as agreed upon

• Landscapers who pocket a down payment and abandon the project

In each of these situations, the property owner had every reason to believe they had a real agreement to fall back on and a right to expect the work to be completed or their money refunded. 

This is where verbal contract disputes get tricky. Without a signature, proving the deal existed is the challenge, because if they deny it, you must prove they’re lying. Payment records are among the most persuasive forms of evidence available. They can prove that a financial exchange occurred for a specific service, validating the existence of a verbal contract.

So when you start building your case, work through it in a logical order.

First, check all communications, including text messages and emails. Next, find any proof of payment — canceled checks, wire transfers, ACH payments, and Zelle or Venmo transactions. Finally, look for any proof that the contractor was on the job, such as photos and witnesses who saw them working at your property. 

The right legal pathway for your situation depends on the specific facts of your case and your goals for resolving the dispute. 

In Colorado, a successful breach of contract claim in a verbal contract case requires you to prove the following four elements:

1. The existence of a contract

2. The plaintiff’s performance of contractual obligations or justification for nonperformance

3. The defendant’s failure to perform contract obligations

4. Resulting damages to the plaintiff

People often overlook the need to prove specific damages. Oftentimes, clients come to me knowing they have been wronged (e.g., poor work or a contractor not completing the job). It is imperative that you seek an opinion from another contractor that documents what the specific damages are and what it will cost to fix.

In construction and home improvement disputes, courts examine whether the work performed fell short of what was promised and whether that failure caused you measurable harm. 

Western Distrib. Co. v. Diodosio, 841 P.2d 1053 (Colo. 1992); Horton v. Bischof & Coffman Constr., LLC, 217 P.3d 1262 (Colo. App. 2009).

In cases where there is disputed evidence to suggest that a verbal contract exists, you may be able to argue that you didn’t get what you paid for. This is unjust enrichment, which hinges on the reasonable belief that it would be unjust for the other party to keep your money when you paid for a service you didn’t receive. This is typically an alternative strategy for resolving an unwritten contract dispute in Colorado that should’ve been in writing but wasn’t.

This is another possible option for cases in which proof of a contract’s existence is scant. Promissory estoppel is applicable when someone made a promise to you, you reasonably relied on that promise, and they didn’t follow through to your detriment. Like unjust enrichment, it’s a way to seek compensation for what you lost through a different legal avenue when a written contract is not available.

If you need to enforce a verbal agreement, you should reach out to an attorney familiar with Colorado contract law as soon as possible. Reaching out to an attorney right away allows you to understand the scope of evidence you need to begin collecting and get clear on the best course of action for your situation. 

The sooner you act, the more options you’re likely to have—especially when it comes to filing a lawsuit. 

You only have a set amount of time to move forward with a lawsuit, and the window can be shorter than people anticipate in Colorado, depending on the type of issue you’re facing: 

• Poor or defective workmanship - You may have as little as two years to file a claim under C.R.S. 13-80-104, which governs actions for injury to real or personal property.

• Breach of contract - You generally have three years under C.R.S. 13-80-101 to file a breach of contract claim under Colorado’s general statute of limitations.

Tip: These deadlines will vary depending on the specifics of your situation. Contacting an attorney early is the most reliable way to ensure you don’t miss out on an opportunity due to a firm deadline.

Why You Can’t Afford to Wait: A Real-Life Misstep

I recently had a potential client approach me to discuss poor work done by a contractor. The homeowner hired a contractor to fix her stairs. The contractor did a poor job, but the homeowner didn’t want to deal with the situation as it infuriated her. The homeowner waited years before finally reaching out for legal help. By this time, it was too late, and there was nothing we could do.

People often want to know what they can actually recover monetarily in a verbal contract dispute. You may be able to recover damages related to the cost of hiring a new contractor to complete the work. Or, if the work was done poorly, you may be able to recover damages for the cost of redoing or correcting the errors.

If you’re struggling to enforce a handshake agreement in Colorado or are a business owner facing a dispute over an unwritten contract, getting legal advice early is the most effective way to protect yourself. Robinson & Henry provides the specialized guidance you need to build your case and pursue what you’re owed, focusing on: 

• Enforcement strategy - Assessing whether your oral agreement meets the criteria for a valid contract and determining if legal theories, like unjust enrichment or promissory estoppel, apply to your situation.

• Evidentiary case building - Helping you gather, organize, and present the evidence, including emails, text messages, payment records, and photos, to demonstrate that a real agreement was in place. 

• Deadline protection - Making sure you understand which statute of limitations applies to your situation, so you don’t accidentally run out the clock on your right to file a claim. 

Connect with a Colorado real estate and business litigation attorney to safeguard your interests. Call 303-688-0944 or book your consultation online to get started today.