An oral contract, also known as a verbal agreement, is a type of agreement that is made verbally between two parties. This means that it is not written down or recorded in any way. While oral contracts are technically enforceable, there are certain situations where they must be put in writing to be legally binding.
The statute of frauds is a legal principle that requires certain types of contracts to be in writing in order to be enforced. This principle varies from state to state, but it generally applies to contracts involving the sale of goods that are worth more than a certain amount of money, real estate transactions, and agreements that cannot be completed within a year.
In addition to these specific requirements, there are also many other situations where it is beneficial to have an oral contract put in writing. One of the main advantages of a written contract is that it provides a clear record of what was agreed upon by both parties. This can be especially important in cases where there is a dispute over the terms of the agreement or where one party does not uphold their end of the bargain.
Another advantage of a written contract is that it can be used as evidence in court. If one party breaches the agreement, the other party can use the written contract as proof that an agreement did exist and that the terms were clearly defined.
Overall, while oral contracts can be enforceable in certain situations, it is always a good idea to put any important agreement in writing. This will help to protect both parties and ensure that everyone knows exactly what they are agreeing to. If you are unsure whether a contract needs to be in writing, it is always best to consult with a qualified attorney who can advise you on the specific laws in your state.
