Verbal agreements
In any transaction, the precise point in time at which ownership is
transferred from one party to another is of critical importance. From
that point on there can be no “going back on the deal” without the
consent of both parties.
In order to identify this point in time, we must understand what
constitutes a change of ownership in any given deal. This is discussed in
this and the following chapters.
This section considers verbal agreements to:
. Purchase
. Give a gift
. Donate to a charity, and
. Where custom makes them binding
Purchase
Once two parties have verbally agreed to a purchase - the seller to sell,
and the buyer to buy - and have agreed on a price, there is a moral
obligation on each of them to stand by his word and complete the deal.
However, this obligation is not halachically binding, since there has not
yet been a change of ownership.
The moral obligation to complete the deal at the agreed price applies
even if there has been a change in market prices since the agreement was
made, or a better deal has been found elsewhere by one of the parties -
unless, of course, an express condition was made that in such an event
the deal may be reconsidered.
It is therefore recommended to make such a condition when closing a
verbal deal, especially if a significant time lapse is expected before the
deal can be carried out.
The moral obligation to complete a verbal deal applies regardless of how
circumstances may have changed, and even if one of the parties has no
further need for the transaction.
Some authorities are lenient where there is a substantial change in
circumstances. However, even according to these opinions it is
recommended to try to appease the offended party.
Question: Eli, a textile dealer, agreed verbally with
John, a retailer, to sell him a large quantity of goods at
a certain price. John asked for a few days to arrange
payment. In the meantime, Dave met Eli and offered
him substantially more for the same stock. Eli therefore
wishes to cancel the deal with John.
Answer: Eli should keep his verbal agreement with
John and go ahead with the deal.
Gifts
If one tells a friend that he intends to give him a small gift, he should
stand by his word and do so. However, if the gift “promised” is a large
one, he is not morally obligated in the same way. The reason for the
distinction between large and small gifts is that in the case of a large gift
it is assumed that the benefactor will not rely on the promise until he
receives the gift.
The exact definition of small and large gifts is dependent on the status of
the giver and receiver.
Question: Uncle George told his nephew Joey that for
his Bar Mitzvah he would buy him a set of Chumashim.
Uncle Don told him that he would get him a solid gold
watch. Sadly, due to a family dispute, both of them are
planning to back out and not even come to the party.
Answer: Uncle George is obligated to keep his word, as
he promised a small gift. Uncle Don is not obligated to
keep his word, as he promised a large gift.
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