Verbal agreements in small claims court are legally binding contracts that have been created and agreed upon without the use of paper or electronic documents. This means that both parties must clearly state what the terms of their agreement are, such as payment amounts and timelines for services provided or goods purchased. If either party does not agree to the terms of the verbal agreement, then it is considered null and void. With this in mind, it’s important to understand that any verbal agreement made in a small claims court should be taken very seriously, even if nothing has been put in writing. All parties involved must abide by the terms they initially agreed upon, and any disputes must be resolved through small claims court proceedings.