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Do promises or word-of-mouth agreements have any worth in the business world?

October 03, 2019


The easiest way and the common communication style of human being is oral communication or word-of-mouth. The word-of-mouth which forms from inside the human body is powerful and help people to passing the information and messages. By word-of-mouth a teacher delivers a lesson, a friend tells a horrible story, mother advises her kids, a businessman promising and making business agreements with the customers. The topic of this article is do promises or word-of-mouth agreements have any worth in the business world? Business communication is not same like normal communication with each other. In business world people do things in very formal ways to avoid the fear of failing. In this article I discussed about what writers say on “promises or word-of-mouth agreements have any worth in the business world?”
I have search internet sources and seen many articles written different authors about this topic, but I haven’t seen any research doing on this. Therefore research data and results discussion not included in my article, but I tried to bring you, ideas from different articles.


Do promises or word-of-mouth agreements have any worth in the business world? In business world, word-of-mouth is use for adverting and promising in the business. Word-of-mouth is low cost and one of the traditional tactic of advertising the products through customers. This powerful cheap traditional advertising tactic practicing many organizations. In an article (Davis, 2018) said “according to HubSpot, consumers discuss specific brands 90 times a week and 90% of consumers trust a brand recommendation from a friend”. So with the help of satisfied customers, word-of-mouth advertising promote the goods effectively.

In business world word-of-mouth promises and agreements have different perspective. Normally the promises and agreements doing by verbal is not recorded for long last and important details and compulsory elements of the promises and agreements are not included. (R.P. Emery & Associates, n.d.), wrote a contact verbal or written agreement making it enforceable at law has to satisfies certain criteria, offer and acceptance, all of the terms must be agreed upon, the parties must intend to be legally bound and consideration, that is, something of value must be exchanged in the transaction. If these legal criteria not present, thus may results the verbal promises and agreements legally blind and face unexpected consequence at very important moment in the business. According to (R.P. Emery & Associates, n.d.), verbal agreements are notoriously difficult to prove the agreement exists and which actual terms included while one person’s word against the other if written document absent. To avoid this trouble, it’s important all agreements to write on both parties same understanding and same intention which address each of the terms and conditions carefully.

In some countries like India oral agreements or promises legally valid same as written one. A writer (Shaikh, 2019) said “an oral agreement is as equally valid, as a written one. The legality, of an oral agreement, cannot be questioned, if it falls under the ambit of the requirements stated in section 10 of the Indian Contract Act, 1872”. It is not essential that a contract must be in writing, unless specified by law or the parties themselves contemplate the reduction of terms of agreement to writing. Oral agreement proven may difficult, but it can be proved in a court of law, through several circumstantial evidence. It is important to keep witnesses and evidences of oral agreements to produce in court in case if needed.


Promises or word-of-mouth agreements have valid even in the business world. But it’s a responsible of leaders who do verbal promises or agreements to keep necessary evidence and witness about the case. And also oral agreement written is not necessary, even it’s highly recommended and safe to keep written documents on basis of both parties communication. Minimum in writing should keep detailed record of all discussions and negotiations with the other party, and copies of all correspondence between yourselves. This helps to limit any misunderstandings and disputes further down the track which paves the way for a more harmonious working relationship.


Davis, K. (2018, March 9). zimmer marketing. Retrieved from zimmer marketing Web site: https://info.zimmermarketing.com/blog/the-ups-and-downs-of-word-of-mouth

R.P. Emery & Associates. (n.d.). findlaw.com.au. Retrieved from findlaw.com.au Web site: https://www.findlaw.com.au/articles/5626/is-a-verbal-agreement-legally-binding.aspx

Shaikh, S. (2019, January 2). Mondaq. Retrieved from Mondaq Web site: http://www.mondaq.com/india/x/768278/Contract+Law/Enforceability+Of+Oral+Agreement+In+India
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