As regards oral contracts, Jamshidi v. Dependable Mechanical Systems Inc., 2018 ONSC 7101, at para. 4, outlines five factors to keep in mind: 1. Credibility: The credibility of the witnesses must be tested against those facts that are not seriously in dispute, and with the preponderance of the evidence and probability surrounding the events. 2. Burden of proof: The person seeking to enforce a disputed oral contract has the onus, both legal and evidentiary, of proving, on a balance of probabilities that the alleged contract was made. 3. Basic contractual principles apply: There must be proof of offer, acceptance and certainty of terms. 4. Consensus ad idem: The parties must agree on the essential terms, and these terms must be capable of being determined with a reasonable degree of certainty. 5. Legal test to final agreement: The court must assess whether the parties have indicated to the outside world in the eyes of the objective reasonable bystander, their intention to contract and the terms of such contract. This is an objective test and is not about the parties’ subjective intentions or beliefs.
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