Oral Contracts are at their best when they pertain to simple agreements, easily memorized, with plenty of evidence that such an agreement is in place. For example: Joe agrees to buy Jane a refrigerator if Jane gives Joe her television. Joe and Jane handshake on the agreement with their friends Bob and Xander as witnesses, then Joe keeps a receipt from the story he purchased the refrigerator from.
Although oral contracts have their uses, there are situations where a written contract would be more advisable. These situations include, but are not limited to:
Although it’s not the preferred method of operating, oral contracts can be considered valid if an agreement is made to buy, sell, or carry out some kind of service as a result of your statement and prior agreement.
If you wish to form an oral contract, be sure that you can prove that such a contract was made. Having several witnesses, for example, can help establish that your contract exists. Likewise, physical evidence, such as e-mails, letters, receipts or even a thank you card, can count as evidence for your oral contract.
Last Modified: 01-17-2018 10:00 PM PSTLaw Library Disclaimer
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