Pinky Promise And Oral Contract: A Legal Perspective

Shortly, Attorney Ugo Lord and Erika Kullberg tested the real power of pinky promise in one of their recent videos on TikTok. As an attempt to make this wholly strange conversation some light, it soon turns into an intriguing insight into the concepts of contracts and the way people tend to perceive them.

The scene begins with what appears to be a mundane, light-hearted conversation. Ugo Lord offers to divide the business in a 50-50 ratio, and Erika Kullberg instantly agrees with this proposal. The agreement is sealed with a pinky promise, leading to Lord posing a thought-provoking question: can a promise made with pinky fingers be considered a binding legal document?

The Oral Contract: Its Significance

Lord answers his own question by stating what really matters is not the pinky promise, but the underlying oral agreement it represents. 

“Oral agreements, even if it has to do with business, can in fact be legally binding.” he states.

However, according to him, the difficulty is to prove the existence of such an agreement. If we can prove the pinky promise through actions or conduct that the agreement happened, then it can certainly be a legally binding oral contract.

“But under ordinary circumstances, yes. A pinky promise is a valid oral contract”. Attorney Lord concludes.

California Law: A Closer Look at Oral Contracts

Regarding Attorney Lord’s explanation, California laws, like many other legislations, accept the validity of oral contracts. Nevertheless, the situation becomes complex in the courts from the perspective that it may not be as clear-cut as it sounds. What makes an agreement legally binding has specific criteria that needs fulfilling.

The first requirement is to have the purpose to be bound by the contract’s terms. The parties might not have directly declared this motive, yet it can be from their words, behavior, activities and conditions of the contract. The law pays attention to the general context and the anticipated reasonable implications of the parties’ actions to find out whether there was a legitimate purpose of creating a contractual relationship.

Another criterion is the clarity of the terms in the contract. The term concepts should be easy to understand so that the partners have know-how of their obligations and rights. It should be obvious to everyone what will be done and what should be avoided when the agreement is issued.

The last criterion that an oral contract must meet to be legally enforceable is the existence of an agreement subject to suitable consideration. In legal terms, ‘consideration’ refers to the benefit that each party expects to receive as a result of the contract. A contract without adequate consideration may be unenforceable as it could be a mere gift rather than a binding agreement.

Applying The Law To The Pinky Promise

When we apply these principles to the pinky promise made between Lord and Kullberg, it seems that all three elements above are present. There is a clear intent on the agreement, the terms are definite, and there is adequate consideration in the mutual benefit they will receive from the business.

As Attorney Lord points out, there are some vital exceptions in this regard. Specific types of contracts, namely those having responsibility, rights and obligations on the scale of real property, are necessary to be in writing in order to be legal. A pinky promise might fulfill the general criteria for an oral contract but it’s important to be aware of the legal requirements and exceptions that should apply to different types of agreements.

Conclusion: The impact of the Pinky Promise

This short video offers viewers a fun back-and-forth between two lawyers, as well as a peek inside the realm of contract law. The main point of this discussion is that a pinky promise, apparently informal, can have power even in a legal system. Nevertheless, if the contract is more complex and has a lot of stuff that may require the agreement of both parties especially regarding the assets and rights, make sure that the contract or agreement is in writing.

In the end, the law is very good at showing us how everything we do has a legal connection, emphasizing the necessity of attentiveness, awareness, and, when required, guidance of a competent lawyer.