In Georgia, relying only on someone's word can become very expensive: the importance of having legal contracts

One of our clients came to our office after going through long and stressful situations with a pair of tenants to whom he rented a townhouse without signing a legal lease agreement, as required by Georgia law.

The issue was that, based on previous experiences with other properties and taking advantage of the same law, the tenants not only lived for a long time without paying rent and without being evicted, but also went further and filed a lawsuit against him for an alleged fall the woman suffered on the property, with hospital expenses reaching $50,000.

When asked why he had not signed a contract that could have avoided all these headaches, his answer was simple.

"I did not think it was necessary because I trusted the people I was renting to."

The mistake

In many Latino families, there is a deeply rooted tradition of making verbal agreements based on trust, friendship, or family ties. A handshake, a verbal promise, or a simple “I will keep my word” often seems sufficient.

The problem arises when one of the parties fails to comply, as happened to our client.

In Georgia, many legal disputes arise precisely because there is no written contract clearly establishing what was agreed upon. When there are no documents, proving who was right can become complicated and expensive.

This frequently happens in situations such as:

* property rentals

* construction or remodeling work

* loans between family members or friends

* buying and selling vehicles

* agreements between business partners

* independent services or contractors

Although some verbal agreements may have legal validity in Georgia, proving them in court can be difficult if there are no messages, receipts, witnesses, or documentation supporting the agreement.

A written contract helps protect both parties because it clearly establishes:

* who is involved in the agreement

* how much money is involved

* payment dates

* each person's responsibilities

* compliance deadlines

* consequences if someone fails to comply

Having a contract does not mean distrusting someone. It means protecting your effort and investment while avoiding future problems.

At Molina Law, we help individuals, families, and small businesses draft, review, and enforce legal contracts in Georgia.

Before closing an important deal based only on your word, consult with an attorney and avoid problems that could cost you much more later.

Your trust is valuable. Your legal protection is too.

This article is for informational purposes only and does not constitute legal advice. Every case is different and should be evaluated individually by a qualified attorney.

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