In Ontario, the law recognizes that verbal contracts can be as binding as written agreements—provided certain legal elements are satisfied. However, the process of disputing a breach of verbal contract in Ontario is often met with legal and evidentiary challenges. At MTS Paralegal Services, we frequently hear from individuals who feel wronged by a broken verbal agreement and are unsure of their rights or recourse.

What Constitutes a Verbal Contract?

Under Ontario contract law, a valid verbal contract must meet the same foundational criteria as a written one. These elements include:

• Offer and acceptance
• Mutual intent to enter into legal relations
• Consideration (something of value exchanged)
• Capacity of the parties
• Legality of the contract’s subject matter

Assuming these elements are present, the contract is legally binding—even if nothing was put in writing. Nevertheless, verbal contract disputes typically arise because the terms are not clearly recorded, making enforcement more difficult.

Proving a Verbal Agreement Exists

The biggest hurdle in disputing a breach of a verbal contract in Ontario is proving that the contract existed and that its terms were clear and mutually agreed upon. Courts in Ontario will often consider the following:

• Witness testimony
• Emails, text messages, or other communications referencing the agreement
• Behaviour or actions that suggest a contract was in place

Because verbal agreements lack the tangible evidence of written contracts, the burden of proof can be high. This is where an experienced paralegal can provide critical support.

Common Scenarios of Dispute

Clients at MTS Paralegal Services often seek assistance with verbal contracts related to:

• Home renovations
• Sale of personal property
• Lending or borrowing of money
• Employment promises or freelance arrangements
• Partnership or business agreements

In these situations, individuals may find themselves without clear documentation but with a genuine belief that a binding agreement existed.

Is It Worth Disputing a Breach?

Whether it is worth pursuing a dispute over a verbal contract depends on several factors:

• Monetary Value: If the amount in dispute falls within the jurisdictional limit of Ontario’s Small Claims Court—now up to $50,000 as of October 1, 2025—then commencing legal action may be both procedurally appropriate and financially practical.
• Strength of Evidence: The more corroborative evidence you can present, the stronger your case will be.
  
• Time Sensitivity: Limitation periods apply. Most contractual claims must be brought within two years of the alleged breach.
  
• Emotional and Practical Considerations: Consider the time, stress, and potential impact on relationships involved.

How MTS Paralegal Services Can Assist

At MTS Paralegal Services, we assess the viability of your verbal contract dispute and guide you through the appropriate legal channels, whether that means drafting demand letters, negotiating settlements, or representing you in Small Claims Court. We understand the nuances of Ontario contract law and advocate with clarity and precision to ensure your rights are protected.

Tim at MTS Paralegal Services brings extensive experience in civil litigation and small claims procedures. He offers client-centred service that respects your time, resources, and legal goals.

If you are involved in a verbal contract dispute and questioning whether it’s worth the fight, we invite you to speak with a legal professional who can assess your case with expertise and honesty.

Call Tim today at (226) 444-4882 or visit https://mtsparalegalservices.com for more information.