Is a verbal construction contract in Panama enforceable if the builder won't sign the written version?

Dear Srss

Thank you for contacting MOLINA & CO regarding your situation involving a verbal construction agreement in Panama.

Under Panamanian law, verbal contracts are generally valid and enforceable, provided that the essential elements of a contract—consent, object, and cause—can be demonstrated. However, enforcement may become challenging if there is no written document, as you would need to rely on other forms of evidence, such as:

Witness testimony;

Emails, messages, or communications that confirm the terms agreed upon;

Proof of payment or invoices; and

Any performance or work already carried out under the agreement.

If the builder now refuses to sign a written version that changes the original terms, it may indicate an attempt to modify the initial agreement. Our firm can assist you in evaluating the available evidence, determining the best legal strategy, and, if necessary, initiating a claim to enforce your rights or recover damages.

We would be pleased to schedule a consultation to review your case in detail and discuss the legal options available to you. Please let us know your availability for a short call or meeting this week.

Kind regards,
MOLINA & CO

Yes. Under Panamanian law, verbal contracts are generally valid and enforceable if the essential elements of a contract can be proven.

In the absence of a written agreement, enforcement relies on evidence such as messages or emails, witness statements, proof of payment, and work already performed.

If the builder is attempting to change the agreed terms by refusing to sign a consistent written contract, this may constitute an improper modification of the original agreement.

Legal review of the available evidence is recommended to protect your rights or seek recovery. Studio Panama Italia .