An oral agreement contract, also known as a verbal contract, is a legally binding agreement made between two parties without any written documentation. In other words, it is an agreement that is made and agreed upon through spoken communication rather than written communication.
In an oral agreement contract, the parties involved agree on the terms and conditions of the contract using spoken language, and they seal the deal with a handshake or any other mutually acceptable gesture. Oral agreements are usually simple and straightforward, and they are commonly used in informal settings like personal relationships, small business transactions, and other situations where a written contract may not be necessary.
However, it is important to understand that oral agreements are just as legally binding as written contracts, and they can be enforced in a court of law if the terms of the agreement are breached. To enforce an oral agreement contract, the party who feels wronged by the other party has to provide evidence of the oral agreement made between them, including the terms and conditions of the contract, the date and location of the agreement, and any witnesses who were present during the agreement.
Despite their legality, oral agreements can be difficult to enforce because they lack substantial evidence. Unlike written contracts, oral agreements are not easily proven, and it can be challenging to provide evidence of the agreement that satisfies a court. As such, it is always advisable to put important agreements in writing to avoid any possible misunderstandings or disputes in the future.
In conclusion, an oral agreement contract is a legally binding contract made between two parties without any written documentation. Despite their legality, oral agreements can be challenging to enforce since they lack substantial evidence. Therefore, it is always advisable to put important agreements in writing to avoid any possible misunderstandings or disputes in the future.