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Oral Agreements
An oral agreement (or oral contract) is a verbal agreement between two or more parties that is intended to be legally binding. It involves spoken words rather than a written document but still requires the essential elements of a contract to be valid:
- Offer: One party proposes terms.
- Acceptance: The other party agrees to those terms.
- Consideration: Something of value is exchanged (e.g., money, services, goods, or promises).
Oral agreements are generally enforceable in court as long as these contract requirements are met and the agreement does not fall under exceptions requiring written contracts (such as contracts involving real estate or agreements that must be in writing under the Statute of Frauds).
However, oral contracts can be challenging to prove if a dispute arises because there is no written record. Courts often rely on the testimony of the parties involved, witnesses, and the conduct of the parties after the agreement to determine the contract's terms and enforceability.
In summary:
| Aspect | Oral Agreement Details |
|---|---|
| Definition | A spoken, legally binding agreement |
| Essential Elements | Offer, acceptance, consideration |
| Enforceability | Generally enforceable unless law requires writing |
| Common Challenges | Difficulty proving terms without written evidence |
| Examples of Consideration | Money, goods, services, promises to act or refrain from acting |
Thus, oral agreements are valid contracts but can be more difficult to enforce due to evidentiary challenges.